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Iran, India sign deal on air services, clean energy

Business Materials 12 July 2010 10:37 (UTC +04:00)

India and Iran signed six cooperation agreements and memorandums of understanding on Friday including agreements on air services and renewable energy.

The deals were singed at the16th Joint Commission session of the two countries in New Delhi. The session was jointly chaired by Indian Foreign Minister S M Krishna and Iranian Economy Minister Shamsheddin Hosseini.

The air services agreement includes enhancement in the capacity entitlement for the designated airlines of each nation from 23 services per week to 31 per week, according to the Times of India.

"The agreement has the potential to spur greater trade investment, tourism and strengthen cultural exchanges between the two countries besides bringing it in tune with the developments in the international civil aviation scenario," the two ministers said in a joint statement.

Significantly, for India, agreements aside, Iran has also agreed to hold technical-level meeting over the issue of Chabahar port, which is strategically important for New Delhi. The port can serve as an entry point for India's outreach in both Afghanistan and Central Asia. The Iranians were earlier seen to be dragging their feet over the port's development.

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