India, May 5 -- Nepal on Monday reiterated its territorial claim over the Lipulekh region, while urging diplomatic dialogue with India to resolve the long-standing dispute. The statement comes a day after India firmly rejected Nepal's position, intensifying tensions between the two neighbours.

India on Sunday dismissed Nepal's claim to the use of Lipulekh Pass in Uttarakhand for the upcoming Kailash Mansarovar Yatra, calling Kathmandu's claim an "unilateral artificial enlargement" that New Delhi considers "untenable." The response followed a formal objection raised by Nepal's Ministry of Foreign Affairs regarding preparations by India and China for the annual pilgrimage route.

Nepal, however, maintained that it is not attempting to expa...