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July 18, 2001
0200 IST

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India, Israel sign $2 bn arms deal

Harsh Dobhal in Jerusalem

India and Israel have signed a US $2 billion contract to boost cooperation in weapon systems and technology, an Israeli defence spokesman said on Tuesday.

The agreement, signed between Israel Aircraft Industry officials and an Indian defence ministry delegation, would ensure Israeli supply of sophisticated radar systems, unmanned aerial vehicles and avionics technology for upgrading Indian fighter aircraft, the spokesman added.

Indian embassy officials, however, refused to comment on the issue saying the embassy was not dealing with the matter.

IAI, which specialises in high technology weaponry, will transfer Israeli technology to Hindustan Aeronautics Limited.

The Indian delegation, comprising top defence officials, visited IAI and is due to visit other Israeli companies engaged in defence production.

The sale of three Phalcon early warning aircraft systems is also understood to be the part of the upcoming cooperation between India and Israel.

According to sources, Israel has shown keen interest to buy Lakshya, a pilotless target aircraft.

The visit of Indian delegation assumes significance in the backdrop of the recent media allegations that Indian peacekeepers in Lebanon were bribed by Hezbullah militants to kidnap three Israeli soldiers last October.

The Israeli defence minister told the visiting delegation that Israel regretted the media reports, which created misleading image of Indian soldiers, sources said.

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