Both nations will identify issues to be addressed regarding existing and upcoming facilities.
The union cabinet on Wednesday accorded ex post facto approval to an agreement between India and Japan for promoting sustainable and low-carbon thermal power development.
"The union cabinet chaired by Prime Minister Narendra Modi on Wednesday granted ex post facto approval to the MoU between India and Japan for promoting sustainable, stable and low-carbon thermal power development in India," a cabinet communique said.
The proposal includes undertaking activities such as update on the current and future policy trend in Indian power sector with wide coverage from renovation and modernisation and life extension to new power development in India, it said.
The pact also provides for identifying barriers that could be addressed through mutual collaboration by the Central Electricity Authority and Japan Coal Energy Centre.
Both nations will identify issues to be addressed regarding existing and upcoming facilities, and also operation and maintenance at either of them, the statement added.
The MoU also provides for consideration of justifiability and feasibility of individual cases of power development based on thermal power generation technologies in terms of funding from the existing financial instruments and other available bilateral financial schemes.
There will be an annual workshop in India and in Japan for bilateral knowledge and technology exchanges, the statement said.