In a major development, India has also extended 4.5 billion dollars in a line of credit to the neighbouring nation for infrastructure projects.
Earlier, following the bilateral talks, two countries signed 22 agreements across multiple sectors.
India and Bangladesh share a almost 4,100-kilometer (2,545-mile) border.
Hasina said the two countries will jointly produce a documentary on the "1971 War of Liberation of Bangladesh", a move that is likely to irk Pakistan.
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"We have the greatest admiration for Prime Minister Sheikh Hasina's firm resolve in dealing with terrorism", he said.
Prime Minister Modi was talking about the Park Street road of New Delhi which will now be named after Bangladesh's founder Sheikh Mujibur Rahman.
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DIESEL AND PETROL: India said it would finance a diesel pipeline from Numaligarh to Parbatipur.
In fact, during her meeting with Sheikh Hasina, Mamata is learnt to have suggested that since Bangladesh needs more water, both sides should explore water-sharing from other river systems in the region too and not just from Teesta.
"People of South Asia will be the beneficiary of our friendly relations", she said, adding that sub-regional cooperation was "very, very important for development". Mr Modi stressed significance of connectivity and lauds restoration of bus and train links between Kolkata-Khulna, and Radhikapur-Birol.
Prime Minister Narendra Modi with his Bangladeshi counterpart Sheikh Hasina at Sommanona Ceremony to salute Indian Soldiers who fought in 1971 war, in New Delhi.
On Teesta pact, she said, "Teesta agreement remains a work in progress.We have not reached a closure on it".
Md Abdul Rauf, a Bangladesh Railway Official said, "The train will service passengers of both countries".
The countries also agreed on an inter-agency agreement between Global Centre for Nuclear Energy Partnership (GCNEP), India and Bangladesh Atomic Energy Commission (BAEC) on cooperation in nuclear power plant projects in Bangladesh. Indian companies will also ink a long-term agreement with Bangladesh for supplying high-speed diesel. A joint statement issued later in the day said that "the two Prime Ministers reiterated their strong commitment to combat terrorism in all its forms and manifestations, and stressed that there can be no justification whatsoever for any act of terror".
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