Manmohan Singh also unveiled India's plan to set up an Information Technology Centre and offered assistance in human resource development and capacity building.

The two countries also decided to intensify their cooperation in combating terrorism and in pursuit of the UN reforms with Mongolia reiterating its 'complete support' to India's candidature for permanent membership of the UN Security Council, a joint statement said.

Mongolia is on the brink of signing a major deal with mining giants Rio Tinto and Ivanhoe for the massive copper and gold deposits in the Gobi desert that is expected to generate $30 billion in tax revenue over 50 years.

If the deal comes through, it will have a major spin-off impact on Mongolia, one of the poorest countries bulging with huge deposits of copper, gold and uranium.

After decades of neglect, Mongolia, a country of 2.7 million people, is at the centre of a scramble for its huge resources with the US, Russia and China competing for a share of the pie.

Oyu Tolgoi, the biggest minerals deposit in the country, has the potential to produce more than 440,000 tonnes of copper and 330,000 ounces of gold a year on average for at least 35 years.