Kenneth Juster, US Under Secretary of Commerce, told Indian and US delegates at a space conference in this southern Indian city of Bangalore that clearance was given last week by his government.

"Our government approved just before the conference a licence authorising Boeing Satellite Systems to engage in discussions ... with the Indian Space Research Organisation on the division of responsibilities of possible joint cooperation in developing and marketing communication satellites," he said.

The chief of the Indian Space Research Organisation (ISRO), G. Madhavan Nair, told reporters the satellite to be jointly built with Boeing would weigh about two tonnes (4,400 pounds).

"We are discussing with Boeing whether we can incorporate some of their payloads and have joint marketing of the communication satellite," Nair said.

"It will be built for the global market and should hit the market within two years," he said.

The five-day conference which will end Friday is exploring possibilites of space cooperation between the United States and India.

More than 500 Indian and foreign delegates are attending the meeting, among them 150 US officials and industry representatives.

Juster said there was a great opportunity for collaboration between the two nations in peaceful use of space.

"Earlier this year our leaders agreed to a strategic framework to expand cooperation in several key areas, including high-technology trade, civilian space programmes and civilian nuclear activities," he said.

"They also agreed to enhance our dialogue on missile defence. The proposed cooperation known as the Next Steps strategic partnership will progess through a series of steps that will build on each other," Juster said.

He hoped the new left-leaning Indian government would embrace the partnership and move forward.

"We need to advance cooperation in high-tech trade, civilian space activities in ways that do not undermine the general international framework on non-proliferation," Juster said.

In Washington on Monday, the US government said it wants to strengthen an agreement with India that allows sharing of satellite data and other environmental research.

The Bangalore conference is a follow-up to a landmark meeting between former Indian prime minister Atal Behari Vajpayee and President Bush in November 2001 and the first since sanctions slapped on India by the US were lifted.

ISRO chief Nair said some of the sanctions, which were imposed following India's 1998 nuclear tests, were still in place.

"Government controls can have a negative effect but through frank talks we can overcome that and move forward," Nair said.

Juster, citing trade statistics, said the US government was granting more access to India of "dual-use" technology, which has both civilian and military applications.

"Only a very small percentage of our total trade with India is even subject to controls," he said.

He said in 2003 the US had approved 90 percent of all dual-use licencing applications for India, with their value doubling to 57 million dollars. In the first half of 2004, such exports worth 51 million dollars were cleared.

SPACE.WIRE