New Delhi, Jul 14 (IANS): With the Union Cabinet's approval on Wednesday, India is now ready to sign a Memorandum of Understanding (MoU) with Russia on cooperation in coking coal, which is used for making steel.

The pact will be signed between India's Ministry of Steel and Russia's Ministry of Energy.

"The MoU shall benefit the entire steel sector by reducing their input cost. This may lead to reduction in cost of steel in the country and promote equity and inclusiveness," said a government statement after the decision was taken in the Cabinet Committee meeting chaired by Prime Minister Narendra Modi earlier in the day.

The MoU will provide an institutional mechanism for co-operation in the coking coal sector between the two countries.

The objective of the MoU is to strengthen cooperation between India and Russia in the steel sector. The activities involved in the cooperation are aimed at diversifying sources of coking coal.