India and Iran on Saturday decided to give a major push to bilateral ties in all aspects, including connectivity, for which New Delhi will participate in the upgradation of the strategically crucial Chahbahar port.
During a meeting between external affairs minister Salman Khurshid and his Iranian counterpart, Mr Ali Akbar Salehi, under the framework of the joint commission, the two sides agreed to work on a trilateral transit agreement involving India, Iran and Afghanistan.
Meanwhile, as United States and European sanctions cripple its economy, Iran offered India a new production-sharing regime for oil exploration in an attempt to keep its third largest buyer of oil engaged. The offer was made by Mr Salehi during talks with Mr Khurshid.
Iran traditionally offers only service contracts to foreign companies, giving them a pre-fixed rate of fee for their effort in exploring and producing oil.
A production-sharing contract will give the foreign country ownership of the oil explored and produced as also the freedom to ship it wherever they want.
The two sides also discussed ways to enhance trade and people-to-people contact, regarding which the need was felt for liberalising the visa regime.