Indian Oil Corporation on Tuesday signed a memorandum of collaboration with Bharat Sanchar Nigam Ltd to cross-sell their products and services.

The collaboration is designed to leverage each other's infrastructure and size so as to deliver better products and services to their customers, a press release issued on Tuesday said.

Under the terms of the agreement, IOC and BSNL would develop exclusive loyalty programmes to retail and expand their customer base.

The collaboration would strive to design business models including sharing of market research and technology wherever applicable to make the collaboration more effective and meaningful.

IOC chairman M S Ramachandran said that while IOC would explore to utilise BSNL's expertise to build connectivity between its widely-spread petrol pumps, supply points and offices, BSNL will have the opportunity to utilise IOC's large network of petrol stations to sell their various products.

IOC will also exploit BSNL's capabilities for creating a `truck-tracking system' for its fleet card customers.

As part of the agreement, BSNL will have the opportunity to set up and offer communication business centres at attractive rates to customers at IOC stations.