NEW DELHI, Jan 20: India signed a $1.6 billion deal on Tuesday to buy a refurbished aircraft carrier and 12 fighter jets from Russia, the Indian defence ministry said.

The agreement on the sale of Admiral Gorshkov Carrier and the aircraft was signed by officials in the presence of visiting Russian Defence Minister Sergei Ivanov and his Indian counterpart George Fernandes, the ministry said.

"It's a pragmatic arrangement. India is buying what it needs, and Russia is selling what it can to reciprocal benefit," said a Russian statement. The aircraft carrier would be delivered to India by 2008, Mr Ivanov told journalists when he arrived here on Monday.

The contract for the aircraft carrier and the 12 Russian-made MiG-29k fighter jets has been negotiated for several years, but its signing had been repeatedly delayed.

The Indian defence ministry said the final decision had been made by the cabinet on Saturday. India's purchase of the old Soviet-era battleship has been controversial at home, where critics say it costs too much and the money should be spent on more modern equipment.

The Indian navy has said the price includes the carrier being refitted with new equipment, extending its life span to almost 40 years. Itar-Tass reported that the carrier's flight deck would be elongated and a catapult installed for speedier takeoffs.

India already has an aircraft carrier, the INS Viraat, a former British-owned Hercules class vessel, which Britain used in the Falklands War. India has 140 other naval ships, including 14 submarines.

Mr Ivanov's three-day visit is aimed at strengthening military and business ties. "The signing of these contracts constitutes a landmark in our military technical cooperation and will contribute to the furthering of our defence, technological and bilateral relations as a whole," said the Indian statement.-APP