Zhukovsky, Russia: The Russian defence export agency Rosoboronoexport signed a contract Tuesday with the Hindustan Aeronautics Limited (HAL), that allows HAL to build up to 1,000 Russian AL-55 engines for India's military.

The signing took place in the presence of Russian President Vladimir Putin at the MAKS 2005 air show outside Moscow.

"The signing with India has great importance for the development of bilateral military-technical cooperation," Rosoboronoexport said in a statement.

The Russian firm beat off European competition to provide plans for the engines, which are to be installed in HJT-36 training jets and new HJT-39 fighter and training aircraft.

Initially, the HAL plans to build 250 of the engines, which are designed by the Russian firm Salut.

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