Jerusalem: Israel Military Industries (IMI) is planning to collaborate with India's Defence Ministry and will open its office in New Delhi to boost arms sales estimated at $ one billion, according to a report.

While IMI did not provide details about possible deals with Indian defence companies, it estimated potential arms sales to India at $ one billion, Israel's leading business daily 'Globes' has reported.

Israel Aircraft Industries (IAI), recognised as one of the leaders in developing military and commercial aerospace technology, is delivering $ 300 million worth of unmanned aerial vehicles (UAVs) to India and advanced negotiations have been going on to supply Phalcon spy planes to New Delhi.

Tadiran Communications, which specialises in innovative military communications, is also providing hundreds of millions of Dollars worth of equipment to New Delhi.

The paper claimed that Israel would also train thousands of Indian Army soldiers in the war against Pakistan-backed Kashmiri separatists. The claim assumes significance in the wake of recent media reports that Israel would train Indian Army personnel.

Israel's defence establishment supports discreet arms sales to India so as not anger Washington, which had forced Tel Aviv to cancel a signed deal with China to supply Phalcan AWACs plane in 2000.

IMI, established in 1933, is showing at the Aero India 2003 defence exhibition in Bangalore this week several weapons it has developed, including anti-concrete and anti-runway bombs, 'Globes' said.

The anti-concrete bomb, PB-500, was developed in the main IMI ammunition laboratory and is capable of piercing highly sophisticated fortifications, such as those surrounding nuclear missile launching bases.

IMI is also displaying its MSOV system, a bomb that can glide on a predetermined path for over 100 km and is designed for ground targets, such as armoured and infantry formations, and airfields, 'Globes' said in another report.

Another system being exhibited at Bangalore is an anti-tank anti-personnel (ATAP) cluster bomb, which is dropped from an airplane, designed to strike at infantry and armoured vehicles. Its sub-munitions include a self-destruct mechanism, which minimises the risk to friendly forces entering the area after an attack.

Arms deals with India include Barak ship point missile defence system and Green Pine missile detection radar. India has reportedly signed a contract worth $ one million with Israeli defence companies to buy arms for special forces.

Soltam Systems Ltd, the Israeli artillery company, has already announced that it would supply tens of millions of Dollars worth of artillery to the Indian Army.

The IAI is also interested in supplying to India its ambitious Arrow anti-missile defence system, which it has recently tested with the simulated firing of several interceptor missiles at once at incoming rockets.

Barely a decade after the two nations established formal diplomatic ties, Israel's highly secretive military complex has become India's second largest weapons provider after Russia and defence co-operation has shot up many times in recent years, the newspaper said.

PTI