Indian Prime Minister Narendra Modi today said relations between Dhaka and New Delhi are consistently "touching new heights" as he inaugurated two rail links and a power project through video conference along with Bangladesh Prime Minister Sheikh Hasina.

"It is a matter of happiness that we have come together to celebrate the success of India-Bangladesh cooperation. Our relations are touching new heights," Modi said in Hindi during the inauguration of three projects -- Akhaura-Agartala rail link, Khulna-Mongla port rail line and the second unit of Maitree power plant in Rampal built with Indian assistance to boost connectivity and energy security in the region.

He said there was "remarkable progress" in the India-Bangladesh relations.

Connectivity initiatives between India and Bangladesh proved to be a lifeline during the Covid-19 pandemic and India's Oxygen Express train supplied more than 4,000 tonnes of liquid medical oxygen to Bangladesh.

Inaugurating the Akhaura-Agartala rail link, Modi said it was the first between Bangladesh and north-east India.

He added that the Khulna-Mongla rail link has connected trade centres in Dhaka and Kolkata.