India and Bangladesh have agreed to sign the extradition treaty in January during the proposed visit of Home Minister Sushilkumar Shinde to Dhaka.

"Both sides agreed that the extradition treaty, which is under consideration by both governments, may be finalised at an early date. It was agreed that Revised Travel Agreement (RTA) as well as the extradition treaty will be finalized and signed in January, 2013 during the proposed visit of Indian Home Minister to Dhaka," said a joint statement issued after Shinde had with his Bangladeshi counterpart Muhiuddin Khan Alamgir here.

The statement, read out by Shinde, said "both sides noted that the action was being taken for repatriation of sentenced prisoners to either country under the agreement for transfer of sentenced prisoners. Both sides agreed to allow development work within 150 yards of zero line."

The two countries also agreed not to resort to firing unless fired upon or attacked by terrorists or armed criminals, the statement said while expressing regret over deaths and loss of life on the border.

Shinde said "mechanisms have put in place which have greatly reduced the scope for such incidents and have strengthened mutual trust and goodwill among the border guarding forces and people living in the border areas.

"The number of such incidents has steadily come down in the last few years. However, even one loss of life is too many. To ensure that no incidents take place in future, India and Bangladesh must work jointly together and further enhance cooperation between our border guarding forces to eliminate illegal trans-border activities," Shinde said.

India also agreed to tracking, apprehending and handing over of the killers of the Father of the Nation of Bangladesh Bangabandhu Sheikh Mujibur Rahman and reassured that it would extend all possible cooperation in this regard, if they are in within the country, he said.

Riasaldar Mosleuddin and one more persons, wanted in connection with the killing Sheikh Mujib and several his family members on August 14-15, 1975, are suspected to be hiding in India.

During the meeting, both sides agreed to further enhance the level of cooperation and vigilance to control the smuggling of fake Indian currency notes.

"Both sides also discussed the urgency of stopping the smuggling of narcotics and psychotropic substances," said the statement.

India and Bangladesh "noted with appreciation the cooperation between the two countries and the action taken to address the menace of terrorism and extremism in a more effective manner by both sides".

"It was agreed to enhance co-operation to address the security concerns and also to implement the Coordinated Border Management Plan (CBMP) signed between the two countries to control the illegal cross border activities," the statement said.

Shinde said functioning of the nodal points for sharing of information on security related matters was also reviewed during the meeting, which was found to be satisfactory.

"India and Bangladesh attach the highest importance to their bilateral relations. Both leaders reiterated their commitment to further expand and strengthen mutual cooperation in the security and border related issues. Both the Home Ministers reaffirmed their commitment not to allow the territory of either country to be used for any activity inimical to each other's interests," he said.

When asked about repatriation of ULFA leader Anup Chetia, currently lodged in a Bangladesh prison, Shinde said "the issue was not discussed."

His Bangladeshi counterpart Muhiuddin Khan Alamgir said his country stood by its commitment to repatriate Chetia to India.

But the ULFA leader had approached the Bangladesh Supreme Court seeking political asylum and the issue is still pending with the court, Alamgir said.

Asked when the land boundary agreement between the two countries would be finalised, Shinde said there was a need for Constitutional amendment and government was taking necessary steps for it which was taking time.

Alamgir said Dhaka had completed all formalities and was waiting for New Delhi's response.