Moscow: India and Russia have decided to increase the charter capital of BRAHMOS joint venture from the current $ 250 million to $ 300 million to cope with the production of supersonic cruise missiles, Defence Minister George Fernandes said.

BRAHMOS joint venture (JV) was set up by India's Defence Research and Development Organisation (DRDO) and Russia's NPO Mashinostroyenie under an agreement signed in 1998 with the active participation of the 'missile man' – President A P J Abdul Kalam.

Briefing the Indian media on the highlights of the defence protocol signed at the end of a two-day session of the Indo-Russian Inter-Governmental Commission on military-technical co-operation on January 17, Fernandes said that BRAHMOS joint venture is a "grand success story".

"We are looking at this project as a model for co-operation between India and Russia, not only in defence, but also in civilian production," he said.

During his stay in Moscow, Fernandes visited the production facilities of the BRAHMOS JV in Reutov town near Moscow.

"BRAHMOS is not simply a joint venture, it goes beyond. It is the joint effort of the scientists, engineers and technicians of Russia and India. We produce some critical parts, Russians other parts, which all go into making supersonic cruise missiles," Fernandes said.

He said similar joint ventures for research, development and production of hi-tech weapon systems are in the pipeline.

In the Indo-Russian protocol on defence co-operation signed in Moscow both sides have agreed to do 'utmost' to prepare the package for signing by the end of March, Fernandes said.

"There is a sense of urgency on both sides. The negotiations are on for almost a decade now. We need Gorshkov, it is not a secret. All the technical aspects have been agreed, only the issue of price remains to be settled," he said.

PTI