NEW DELHI, Sept 12: Israel has offered to enter a partnership with India in the development of a state-of-the-art submarine, it was reported on Friday.

This followed an assurance by Indian Defence Minister George Fernandes to Israeli Prime Minister Ariel Sharon that sensitive defence technology would not be transferred to a third country, specifically Iran, the Hindustan Times newspaper reported.

“We were able to clear misgivings about our reliability as partners. They (Israel) were assured that transfer of defence technology would remain a strictly bilateral affair,” the report quoted Indian defence ministry officials as saying.

During Sharon’s first official visit to India from Monday through Wednesday “the two sides discussed the likelihood of partnership in producing a conventionally-powered submarine”, officials said.

India’s submarine fleet is of Russian origin. Israel is set to overtake Russia as India’s main defence equipment supplier.

India’s programme to develop a nuclear-powered submarine has so far been unsuccessful, the report said.

There has been little progress in Project 75, its plan to produce 24 submarines over 30 years. India was negotiating with France on the manufacture of the Scorpene submarine, and with Russia on the Amur sub.

On Wednesday, Israeli Deputy Prime Minister Yosef Lapid said India and Israel would soon sign off on a 1 billion US dollar Phalcon radar system deal.

India has been negotiating the acquisition of three Phalcons — an early warning radar system — from Israel to be mounted on the Russian-built Ilyushin II-76 aircraft.

The Phalcon can detect cruise missiles and low-flying aircraft faster than ground-based radar.

If the deal goes through, India will be the only country in the region with sophisticated AWACS (Airborne Warning and Control Systems), aircraft-mounted radar coupled with ground-based interception capability.—dpa