There are 5 pair of points. Each pair quite fair away from the other one.
Each point pair has two points, slightly away from each other. As in proxity but not overlapping.
I want to merge each pair seperately. So final result should have 5 points against 5 pairs.
In 3DS Max there is Merge tool with tolerance parameter. Do we have something like this in Blender 2.64a?
You can use ‘Remove Doubles’ from the specials menu (w key). After clicking it you can find in the left panel (the one you get pressing t key) the merge distance option which works as threshold
“Remove Doubles” is the name in Blender. It’s in the [W] menu. You can set the distance at which vertices will be merged in the tools panel on the left ([T] key) or press [F6] which will bring a popup for the parameters.
Can’t thank you enough 
Still thanks a ton Kaluura