India and Japan on Monday agreed to set an action plan to improve energy efficiency and increase cooperation in the development of renewable sources.

A joint statement issued at the end of an India-Japan energy dialogue said both the countries would explore ways and means to further cooperation in the field of new and renewable energy sources.

The statement came from Japanese Trade Minister Akira Amari and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

"We have agreed to set individual goals and formulate action plans voluntarily for improving energy efficiency," it said.

Talking to media persons, Ahluwalia said the Indo-Japan energy cooperation does not involve development of nuclear energy sources.

However, the two countries underlined the need for increasing cooperation among private and public business operators for promoting clean development mechanism projects based on Kyoto Protocol.

At the conclusion of the Indo-Japan energy dialogue, the Tata Energy Research Institute and the Institute of Energy Economics of Japan signed an MoU to undertake research and study on energy challenges in the world in general, and India and Japan in particular.