In an agreement announced at the World Economic Forum in Davos, Mr Forrest says he'll help arrange a feasibility study for the Punjab province on the conversion of its lignite coal to diesel, using technology developed in Australia.
"They have literally hundreds of billions of tonnes of equivalent barrel of oil energy in their lignite if they can release that energy with the right technology and that technology we will make available pro bono, without charge and we will link that informally, but absolutely to their total commitment to free their people from slavery."
In return, Punjab's chief minister Shabaz Sharif has promised to work with Mr Forrest's Walk Free Foundation to eradicate slavery.
The deal has the approval of former British Prime Minister Tony Blair, who says Mr Forrest was setting a good Australian philanthropic example.
"The issue with slavery is that it is everywhere," Forrest told Huffington Post from the sidelines of the conference.
"It's enough to break anyone's heart," Forrest continued.
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