Prime Minister Manmohan Singh and his Japanese counterpart Shinzo Abe in their talks here agreed that the two sides will explore the idea of re-development of Nalanda as a major centre of learning with the establishment of an international university on the basis of regional cooperation.

According to the joint statement issued after the talks, the two leaders recalled the important role of Nalanda in the ancient period as a leading international university contributing to Buddhist and secular studies.

Japan has given vital assistance in sprucing up the Buddhist circuit in India.

The two leaders welcomed the signing of MoU on cooperation between the Japan Foundation and the Indian Council for Cultural Relations.

The two Prime Ministers also welcomed the understandings on sister province and state relationship reached between Fukuoka prefecture and Delhi and Okayama prefecture and Maharashtra and encouraged further expansion of such twinning arrangements to enhance people-to-people relations and closer economic ties.