NEW DELHI India confirmed on Monday it will purchase 347 T-90 battle tanks from Russia and said it will consider a demand from Moscow that it pay an additional US$1.2 billion because of delays in a deal for a Soviet-built aircraft carrier and 16 fighter jets.

Visiting Russian Defence Minister Anatoly Serdyukov and his Indian counterpart A.K. Antony also signed a protocol Monday for the joint development and production of military hardware. Another 1,000 T-90 tanks will be manufactured in India under a technology transfer agreement with Russia, an Indian defense ministry statement said.Serdyukov said defense ties between Russia and India “are transforming from a vendor-seller relationship to joint development and production.”

The 347 T-90 tanks are expected to cost India 49 billion rupees ($1.1 billion), according to Indian newspaper reports.

India has long been a top customer for Russian weaponry, but recently was involved in a well publicized dispute over a contract for a refurbished Soviet-built aircraft carrier, the Admiral Gorshkov. Antony told reporters India was considering Russia's demand for an additional $1.2 billion because of rising costs resulting from delays in the deal and a decision was expected soon.

The original 2004 contract was for $1.5 billion for the aircraft carrier and 16 fighter aircraft, the Press Trust of India news agency reported.

Russia also is courting India to win a contract to supply 126 new fighter planes worth $10 billion for the Indian air force, offering an advanced version of the MiG-29.—AP