India and Russia sign major aircraft deal

Written By Unknown on Senin, 24 Desember 2012 | 19.50

RUSSIA and India have signed deals for military aircraft estimated to be worth several billion dollars during Russian President Vladimir Putin's day-long summit with Prime Minister Manmohan Singh.

Ten agreements were signed during the summit, including a contract for the supply of 42 Russian Sukhoi-30MKI fighter jets to be manufactured under licence in India, the Indian Foreign Ministry said on Monday.

A separate contract was signed for the delivery of 71 Mi-17 V5 attack helicopters.

Analysts estimated the deals to be worth about $A3 billion.

An agreement was also signed between India's Elcom Systems and Vertoleti Rassi for setting up a joint venture in India for the manufacture of Russian helicopters.

"Russia is a key partner in our efforts to modernise our armed forces and enhance our defence preparedness," Singh said.

Russia supplies 60 to 70 per cent of India's defence equipment, and the two countries have embarked on several joint ventures, including development and production of supersonic BrahMos missiles.

In recent years, however, France's Dassault Rafale and US-based Boeing have won contracts for supplying military aircraft.

The two leaders also discussed trade, investment, co-operation in the nuclear energy sector and the situation in Afghanistan, they said at a press briefing.

India and Russia have been trying to boost trade and investment and expand it in areas other than defence. Two-way trade stood at $A7.25 billion in 2009 and was estimated at $A10 billion in 2012, the Indian government said.

Monday's agreements included a memorandum of understanding between the Russia Foundation for Direct Investments and the State Bank of India to promote up to $A2 billion of direct investment between the two countries.

The other pacts signed aimed at boosting co-operation in the fields of science and technology, information technology, pharmaceuticals and cultural exchanges.

Singh and Putin discussed a nuclear energy plant at Kudankulam in southern India, which is being built with Russian assistance.

The first two units are near completion, but the third and the fourth unit have run into trouble with India enacting a nuclear liability law that Russia said would affect the price agreed for the project.

No details were given of the Kudankulam discussions, with Singh saying: "Negotiations for the construction of units three and four at Kudankulam have made good progress."

The two sides also discussed regional issues, including the situation in Afghanistan and West Asia.

"We reviewed the ongoing developments in Afghanistan and agreed to work together against threats posed by extremist ideologies and drug trafficking," Singh said.


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