A statement declaring the cooperation was signed by the Japanese Minister of Economy, Trade and Industry Akira Amari and Montek Singh Ahluwalia, deputy chairman of India's planning panel.

"Based on the Cebu Declaration of Energy Security in East Asia adopted at the second East Asia summit, India and Japan have agreed to set individual goals and prepare action plans voluntarily for improving energy efficiency," according to a joint declaration released at the end of the second meeting of the India-Japan Energy Dialogue Tuesday.

Ahluwalia said the Indo-Japan energy cooperation does not involve development of nuclear energy sources.

He said the two countries emphasized the need for increasing cooperation among private and public business operators for promoting clean development projects based on meeting the Kyoto Protocol.

The Energy Research Institute, a non-government organization, also signed an agreement with the Institute of Energy Economics of Japan to conduct research and study energy challenges in India and Japan, said a planning commission spokesman.

According to a Japanese minister, the Indo-Japan partnership efforts will be strengthened during the East Asia Summit, the Asia-Pacific Partnership on Clean Development and Climate and an energy meeting scheduled to be held in Japan in 2008.