New Delhi: India and Cambodia have decided to enhance defence cooperation after holding wide-ranging talks aimed at strengthening bilateral ties in various fields.

Prime minister Manmohan Singh and his Cambodian counterpart Hun Sen covered several sectors in their talks, including agriculture, banking, oil exploration and water resources besides defence.

The two sides signed seven agreements after the talks on Saturday, the second day of Hun''''s four-day state visit here.

India will also extend a Line of Credit of $35.2 million to Cambodia at a fixed rate of interest of 1.75 percent repayable over 20 years.

An agreement was also reached on transfer of sentenced persons, which provides for prisoners incarcerated in the other country to return to their homeland to serve the remainder of their prison term.

The MoU on cooperation in the field of water resources management will cover collaboration and joint activities in the sector. It envisages the exchange of experts, organisation of training programmes and establishment of a joint working group to monitor cooperation in the area.

The two countries also signed an agreement that facilitates regular Foreign Office consultations at the vice ministerial level to review all aspects of bilateral relations and exchange of views on issues of mutual interest.

The leaders also agreed upon a work plan on cooperation in the field of agriculture and allied sectors.

A MoU was also signed on cooperation and technical assistance between ONGC Videsh Limited and the Cambodian National Petroleum Authority.