Dhaka: In a historic move, India and Bangladesh on Saturday signed the Land Boundary Agreement to finally put an end to the 41-year-old boundary dispute. Prime Minister Narendra Modi announced a fresh $2 billion line of credit for Bangladesh and promised quick implementation of the earlier line of credit of $800 million and the full disbursement of $200 million on the first day of his tour to the eastern neighbour.

With the border agreement in place, India has now control of 510 acres of land while Bangladesh will have control of 10,000 acres of land.

Modi, on his maiden visit to Bangladesh, also expressed confidence to have a "fair solution" to the Teesta and Feni river water sharing issues with Bangladesh "with the support of state governments in India".

Talking about the Indo-Bangladesh ties, Modi said, "We are not just neighbours but nations bound by the threads of history, religion, culture, language and kinship and a passion for cricket."

After extensive talks between Modi and Bangladesh Prime Minister Sheikh Hasina, the two sides signed 22 agreements, including on cooperation in maritime safety and to curb human trafficking and fake Indian currency.

The formal Land Boundary Agreement ratification ceremony was witnessed by Modi, Hasina and West Bengal Chief Minister Mamata Banerjee.

The exchange of documents paves way for the operationalisation of the 1974 India-Bangladesh LBA that provides for exchange of 161 enclaves between the two countries. A total 111 border enclaves will be transferred to Bangladesh in exchange for 51 that will become part of India.

In the recently concluded Budget Session, Parliament had passed a historic Constitution Amendment Bill seeking to settle India's 41-year-old border issue with Bangladesh. The bill will operationalise the India-Bangladesh Land Boundary agreement that provides for exchange of 161 enclaves between the two countries.

"The visit is at a historic moment. We have resolved a question that has lingered since Independence. Our two nations have a settled boundary. It will make our borders more secure and people's life there more stable," Modi said at a joint press conference.