India has agreed to buy up to 300 advanced stealth fighter jets from Russia, Defence Minister A.K. Antony said Thursday, announcing a deal that could be worth up to 30 billion dollars.

Antony told a press conference with his Russian counterpart Anatoly Serdyukov that Russia would supply the Fifth Generation Fighter Aircraft (FGFA) as well as 45 multi-role transport aircraft.

"India will receive 250-300 most advanced FGFAs," Antony said. "These are the two major projects for the next 10 years which will be a shining example of Indian-Russian cooperation."

Hindustan Aeronautic Ltd (HAL) and Russia's United Aircraft Corp. and Rosoboronexport signed a joint venture last month to develop the multi-role transport aircraft in a project worth 645 million dollars.

Serdyukov said the success in the co-production of the BrahMos cruise missile would spur the FGFA's joint development by India's HAL and Russia's state-owned Sukhoi Company.

"We have a 10-year programme and it is quite challenging (but) we have very good experience in military cooperation and BrahMos is an example," the Russian minister said of the FGFA, the richest deal in India's military history.

"The FGFA have been designed by us, the price has been fixed and the draft of the agreement has been given to India. Once it is signed, HAL and Sukhoi will participate," he said.

Serdyukov did not disclose details.

Experts say each 30-ton FGFA is worth up to 100 million dollars.

Indian Defence Production Secretary R.K. Singh said the costing would be worked out in stages.

"At present a 300-million dollar preliminary design contract for the FGFA programme is currently under the (Indian) government's consideration," Singh told AFP separately.

The draft agreement is likely to be signed during a trip to India by President Dmitry Medvedev in December.

Moscow is New Delhi's largest military supplier but recent frictions over cost escalations and delays in the delivery of a refurbished Russian aircraft carrier have strained cosy bilateral ties.

"We have a great volume of (military) projects and so it is natural to have some delays," Serdyukov said.

The minister also said Russia was waiting for New Delhi's clearance to supply 22 attack helicopters and 15 heavylift helicopters.

"As soon as we get the contract we will provide them," Serdyukov added.

India plans to mothball its mainstay MiG-21 Soviet-era fighter jets, which have earned the sobriquet "flying coffins" because of their dismal safety record.

India is also in the process of acquiring 270 Sukhoi war jets worth 12 billion dollars and is poised to hand out a contract for 126 fighter planes as part of a separate 12-billion dollar deal for which six global aeronautical giants are in the race.

earlier related report
Russia to refund Iran over missile deal: arms export chief
Nicosia (AFP) Oct 7, 2010 - Russia is reimbursing Iran for its downpayments on a deal for advanced S-300 ground-to-air missiles which Moscow halted in the face of tough new UN sanctions, Russian Technologies chief Sergei Chemezov told reporters on Thursday.

"We are now preparing all the necessary documents," said Chemezov, whose company includes arms exporting monopoly Rosoboronexport.

"We should return them all the funds," he said. "Of course, they are not very pleased. We do not have a choice."

Chemezov said it was unlikely Russia would return the money by the end of the year, however, and declined to quantify the funds in question.

Iran has threatened to sue Russia over what it regards as a breach of contract.

Russia had come under strong US and Israeli pressure not to go ahead with the sale of a weapons system that was seen as greatly complicating any military action against Iran.

Both Israel and the United States have refused to rule out a resort to military action to prevent Iran acquiring a nuclear weapons capability, an ambition Iran strongly denies.