Affirming India's consistent commitment to the Palestinian cause, Prime Minister Manmohan Singh on Tuesday announced an assistance of 20 million US dollars to the Palestinian Authority and promised to do all New Delhi can to help it in all its endeavours.

Singh, who held wide-ranging talks with visiting Palestinian National Authority (PNA) President Mahmoud Abbas in New Delhi, said India favours a negotiated settlement that could result in a ‘sovereign, independent, viable and united state of Palestine living within secure and recognised borders side by side at peace with Israel’.

During the talks, Singh and Abbas discussed the West Asia peace process, with the Palestinian leader apprising the Prime Minister about the latest developments. The two sides also discussed ways to enhance cooperation between themselves.

Singh later announced an assistance of 10 million US dollars (approx Rs 40 crore) to the Palestinian Authority as budgetary support to help it meet its immediate needs. India will also give 10 million US dollars as assistance for developmental projects, he said.

"India will continue to do all it can to assist Palestine in all its endeavours, including capacity building," Singh said while laying the foundation stone for the Embassy of Palestine in New Delhi along with Abbas.

The Embassy-cum-residential premises in the diplomatic enclave of Chanakyapuri is being built by India as a gift.

Appreciating New Delhi's gestures, Abbas said, "India is giving us support without us asking it. Whenever I come here, I am surprised to see more and more announcements of aid."