India, Russia agree arms pact likely worth $5 bln

By Bappa Majumdar

NEW DELHI (Reuters) - India and Russia agreed two military pacts on Thursday, including a 10-year deal on weapons, aircraft and maintenance contracts potentially worth at least $5 billion, Indian defence officials said.

India's Defence Minister A.K. Antony and his Russian counterpart Anatoly Serdyukov agreed the deals in Moscow.

"All defence deals, all contracts, will come under the 10- year agreement," Defence Ministry Spokesman Sitanshu Kar said in New Delhi. Defence officials told Reuters that the pact had business potential worth at least $5 billion.

The 10-year deal, to be signed when Prime Minister Manmohan Singh visits Russia this year, would include a $1 billion deal for 80 Russian Mi-17 helicopters and contracts for fitting Brahmos missiles onto Russian-made Sukhoi fighter planes.

They are also building a modern supersonic fighter aircraft invisible to radars like the U.S. F-22 Raptor stealth fighter, P.K. Barbora, a top Indian Air Force official told Reuters.

The second pact covers after-sales product support for defence equipment of Russian origin.

India's growing ties with the United States, underscored by a civilian nuclear deal, has put Russia at unease, as New Delhi seeks to reach out to other countries to modernise its military inventory of mostly ageing Russian-made arms and fighter jets.

New Delhi also complains of delays in supply of Russian defence equipment, including a refitted aircraft carrier, resulting in huge cost overrun and affecting military planning.