Russia mulls nuclear sub lease to India - agency

Russia's President Dmitry Medvedev (L) shakes hands with India's Prime Minister Manmohan Singh before their meeting in New Delhi December 5, 2008. Russia may lease out several of its nuclear-powered submarines to India in the next few years, Itar-Tass news agency quoted a Russian government agency as saying on Monday.

MOSCOW (Reuters) - Russia may lease out several of its nuclear-powered submarines to India in the next few years, Itar-Tass news agency quoted a Russian government agency as saying on Monday.

The possible rent deal was first mentioned by Russian President Dmitry Medvedev before his visit to India this month. India, like neighbouring Asian power China, is one of Russia's biggest clients for arms sales.

"There is a real possibility of leasing out to India several of our submarines powered by nuclear reactors for a term of 10 years," Itar-Tass quoted Mikhail Dmitriyev, the head of Russia's Federal Military and Technical Cooperation Service (FSVTS).

"This possibility can materialise in the coming years," he said. "The talk is not about selling submarines into India's property, but about their rent by India's navy."

Officials at FSVTS and government arms trader Rosoboronexport could not be immediately reached for comment.

Dmitriyev said the leased submarines would be of the same class as the Nerpa, involved in an accident last month in the Sea of Japan in which 20 people died. He gave no further detail.

Medvedev has said the accident aboard the Nerpa was probably caused by human error and any worries about the safety of Russian submarines were misplaced.

The Nerpa represents Project 971 of Russia's Soviet-designed attack submarines codenamed "Akula" by NATO. They have been in service since the mid-1980s and are armed with torpedoes, cruise missiles and can carry underwater missiles.

Dmitriyev also said Russia would sell 80 Mi-17 multi-purpose helicopters worth around $1.5 billion over the next two or three years. The deal was signed on Dec. 5 by India's defence ministry and Rosoboronexport in the presence of the two heads of state, he said.