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I have a long term Czech Republic visa on my Indian passport. But I need to get my passport re-issued. When re-issued, the Indian govt. returns the old passport with a cancelled seal on it stapled with the new passport (since old passport has a valid visa). Now when I travel to Czech Republic, is it possible to travel by carrying both passports - the new passport (which has a reference to old passport no.) stapled to the old passport with valid visa? Or is there an alternate procedure I should follow?

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Hanky 웃 Panky's answer relies on the assumption that the procedure used in the US applies everywhere. This is a dangerous assumption.

In fact, Latvian authorities have gone to court to argue that a Schengen visa in an expired passport is no longer valid. Fortunately for you, they lost. The decision applies to all Schengen countries, including the Czech Republic.

http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1436329227373&uri=CELEX:62012CJ0575

The end result is that yes, you should travel with both passports: the newer valid one and the expired one that contains the valid visa.

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You have a visa stamped on your old passport which is stapled with the new passport, there is nothing here which would invalidate that visa. You have nothing to worry.

This is a common occurrence with long term visas. You can apply for your new passport to be stamped but even without that your visa is still valid.

And yes obviously you have to carry both passports with you for a few years to come.

Just to refer to some facts, i'll quote an example for US related to this, i couldn't find one for Czech republic but i have no reason to believe it would be different there because this is a norm everywhere.

My old passport has already expired. My visa to travel to the United States is still valid but in my expired passport. Do I need to apply for a new visa with my new passport?

No. If your visa is still valid you can travel to the United States with your two passports, as long as the visa is valid, not damaged, and is the appropriate type of visa required for your principal purpose of travel. (Example: tourist visa, when your principal purpose of travel is tourism). Both passports (the valid and the expired one with the visa) should be from the same country and type (Example: both Uruguayan regular passports, both official passports, etc.). When you arrive at the U.S. port-of-entry (POE, generally an airport or land border) the Customs and Border Protection Immigration Officer will check your visa in the old passport and if s/he decides to admit you into the United States they will stamp your new passport with an admission stamp along with the annotation "VIOPP" (visa in other passport). Do not try to remove the visa from your old passport and stick it into the new valid passport. If you do so, your visa will no longer be valid..

Reference

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