India and Palestine have signed an agreement for setting up of a techno park in Ramallah, Palestine, with an Indian grant worth $12 million, said a report.

The decision to set up 'Palestine-India Techno Park' was taken during the visit of President Pranab Mukherjee to that country in October last year, added the Economic Times report.

India announced a grant of $12 million for setting up the park with payment of $3 million each on half-yearly basis for two years, it said.

Additionally, the Palestinian side has made the land available for the project.

On completion, the techno park will serve as an IT hub in Palestine with complete IT facilities offering a one-stop solution to all IT-related service requirements, providing state-of-the-art technology, hosting IT companies and foreign companies benefiting local business, universities and other institutions, added the report.