The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved signing of Framework of Understanding (FoU) on cooperation in the hydrocarbon sector with Bangladesh following companies from both the countries signing MoU worth over $9 billion, a cabinet communique said.
The objective of the proposed FoU is to establish a cooperative institutional framework mechanism to facilitate and enhance India - Bangladesh bilateral cooperation in the hydrocarbon sector on the basis of equality and mutual benefit, it said.
During the recent visit of neighbouring country's Prime Minister Sheikh Hasina, Indian and Bangladeshi firms on Monday had signed memoranda of understanding (MoUs) worth over $9 billion designed to deepen cooperation in various sectors, including power, oil and gas.
The FoU promotes bilateral cooperation at the sub - regional and regional levels.
According to officials, it will provide impetus to development and enable the two countries to realise their developmental aspirations, shared destiny and common vision of a peaceful and prosperous South Asia.
The proposed FoU is non - binding in nature and will be valid for five years, the statement added.