India's Prime Minister Manmohan Singh (R) and his Japanese counterpart Taro Aso attend a joint news conference after their talks at Aso's official residence in Tokyo October 22, 2008.(Xinhua/Reuters Photo) Photo Gallery>>>

    TOKYO, Oct. 22 (Xinhua) -- Japan agreed to provide its biggest-ever yen loan for a single overseas project, worth about 450 billion yen (about 4.55 billion U.S. dollars ), to India to help build a freight rail connecting New Delhi and Mumbai, which is key to India's development.

    Japanese Prime Minister Taro Aso and visiting Indian Prime Minister Manmohan Singh reaffirmed the decision after meeting in Tokyo Wednesday.

India's Prime Minister Manmohan Singh (L) meets with Japanese Prime Minister Taro Aso at the latter's official residence in Tokyo October 22, 2008.(Xinhua/Reuters Photo) Photo Gallery>>>

    Japan and India also issued the Joint Declaration on Security Cooperation, agreeing to enhance strategic dialogue, joint military exercises and cooperation in the area of anti-terrorism and disaster prevention.

    The two countries will conduct strategic dialogues between their foreign and defense ministers, as well as promote cooperation in maritime security.

    Aso and Singh also pledged to cooperate to tackle climate change and to promote clean energy. The two leaders expressed concern over the high level global food prices agreed to jointly mitigate the impact of high and volatile oil prices.

    They decided to continue their close cooperation to achieve movement towards the reform of the United Nations Security Council.

    Singh, who arrived Tuesday, is on his second visit to Japan this year, following his trip in July to attend the G-8 summit in Hokkaido.

    The two leaders are scheduled to depart Thursday for Beijing to attend the Asia-Europe Meeting summit.