New Delhi, Feb 11 (Inditop.com) The government Thursday gave its approval for signing of an Air Services Agreement (ASA) between India and Nepal.

An official statement said that a new ASA based on International Civil Aviation Organisation (ICAO) template was negotiated and initialled in September 2009 between India and Nepal.

It said the ASA has the potential to spur greater trade investment, tourism and strengthening the cultural exchange between the two countries besides bringing it in tune with developments in the international civil aviation scenario.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh.