Nay Pyi Taw (Myanmar), May 28 (ANI): At a time when Myanmar is undergoing rapid transformation towards becoming a constitutional democracy, India and Myanmar have decided to ramp up mutual trade, connectivity and security cooperation.

After Prime Minister Manmohan Singh held talks with Myanmar leadership, the two countries inked 12 agreements on Monday, which include $500 million credit line to Myanmar, border area development under which India promised financial assistance of US$ 5 million per year for five years for undertaking small developmental projects.

Both leaders reaffirmed their shared commitment to fight the scourge of terrorism and insurgent activity in all its forms and manifestations. Both leaders reiterated the assurance that territories of either country would not be allowed to be used for activities inimical to the other, including for training, sanctuary and other operations by terrorist and insurgentrganizations and their operatives.

India and Myanmar also inked new Air Services Agreement. The new arrangementrovides for 5th freedom rights that would enable Indian carriers to combine their flights to Myanmar with other destinations in South East Asia and enhancement of direct flights, including by private carriers, between India and Myanmar.

Although Prime Minister of India and the President of Myanmar have agreed to introduce Imphal- Mandalay bus service, the proposed service has hit a roadblock. Agreement on Imphal Mandalay road could not be inked because of the lack of all weather road and the technical modalities.

India and Myanmar also agreed on setting up of a Joint Working Group on Cooperation in the Railway Sector to examine the issues involved in enhancing rail connectivity.

Prime Minister also met delegation of Indian CEO's led by Sunil Bharti Mittal , Atul Punj , Hari Bhartia , RV Kanoria and Naveen Jindal who are here to explore the business opportunities.

Talking to ANI after the meeting, the Airtel chief said that the time to invest in Myanmar has arrived, and as it is beginning to happen, each and every sector of infrastructure is to be built here.

Prime Minister Singh is scheduled to meet the opposition leader and Nobel Laureate Aung Su Kyi on Tuesday, before returning home the same day. By Naveen Kapoor (ANI)