Financial sources needed for enforcing the deal, which amounts to $600 million, will be secured by India. An Indian state-run company named Rites is in charge of providing the locomotives to Iran.
The MoU was signed during the three-day visit of Iran's Road and Urban Development Minister Abbas Akhoundi to India by Deputy Head of Iran Railway Company for Planning and Economy of Transportation Nourollah Beiranvand and Managing Director of State Locomotive Company Rajeev Mehrotra in New Delhi.
Akhoundi told on Friday, 'Based on the MoU, part of the locomotives will be produced in Iran, so we should try to turn the MoU into a deal.'
Noting that the MoU will mark a major industrial cooperation between the two countries, he said that the cooperation will last at least three years.
'Since India's railway industry enjoys modern technology, we will strive to turn some sections into official deals during President Rouhani's upcoming visit to New Delhi,' he said.
Akhoundi arrived in New Delhi on Wednesday on a three-day official visit at the head of a delegation comprising private sector activists to help promote mutual cooperation in the field of transportation.