The two countries also signed agreements for the long-awaited sale to India of a refitted Soviet-era aircraft carrier as well as 29 MiG fighter jets, further cementing Moscow's role as New Delhi's principal arms provider.

Energy-hungry India is one of the world's biggest markets for nuclear technology and the reactor deal is a triumph for Russia's state atomic agency Rosatom which faces stiff competition from French and US rivals.

While welcoming the deals, Putin stressed that the two Cold War allies were still short of realising the potential of their partnership, one half of the powerful four-strong group of emerging nations that includes China and Brazil.

"The level of our capabilities has not been reached," he said following talks with Indian Premier Manmohan Singh.

Singh hailed the meeting with Russia -- a "trusted and reliable strategic partner" and a "pillar of our foreign policy" -- and pointed to the "rich and very substantive" agreements signed in nuclear energy, defence, space and other sectors.

Russian Deputy Prime Minister Sergei Ivanov said the reactor agreement covered the construction of "up to 16 nuclear energy units" at three Indian sites.

Earlier, Sergei Kiriyenko, the head of Russia's state atomic agency said six of the reactors would be built by 2017.

Two units are already under construction in the southern Indian state of Tamil Nadu and Russia won a deal to build four more in 2008. It was unclear if the 16 reactors referred to by Ivanov included these six.

The accord on the aircraft carrier, the Admiral Gorshkov, marks the end of a lengthy purchase process that was marred by a series of price disputes and delayed deliveries.

Ivanov said the ship would be delivered by the end of 2012. The final cost was not revealed, although experts believe it to be around 2.3 billion dollars.

Russia supplies 70 percent of India's military hardware but in recent years New Delhi has looked to other suppliers including Israel and the United States.

Mikhail Pogosyan, the general director of Russian plane maker Sukhoi as well as the unit that manufactures MiGs estimated the value of the MiG-29K fighter deal at around 1.5 billion dollars.

The strong ties between Moscow and New Delhi date back to the 1950s after the death of Stalin. But India has in recent years also taken care to balance this friendship by fostering closer relations with Washington.

In a live webcast interaction with Indian businessmen, Putin said it was time for the old Cold War allies to boost trade beyond the limited scope of defence.

At just over 7.5 billion dollars in 2009, bilateral trade turnover is miniscule and the two countries aim to lift it to 20 billion dollars by 2015.

"There is the political will on both sides, but we need support from the captains of industry," Putin said.

"Cooperation in hi-tech is the priority for us," he added. "The Russian government is ready to directly support this activity, with the help of additional financial assistance, if need be."

On security issues, Putin highlighted the presence of militant outfits operating along the Afghanistan-Pakistan border, saying they were cause for concern not just to Russia and India but the entire region.

Putin also reassured that Russia had prioritised its military relations with India over rival Pakistan, with which New Delhi has fought three wars since 1947.

In the space realm, Russia agreed to help put an Indian into space in 2015 -- the target date for India's first manned space mission.

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News