Tuesday, October 3 2006 10:31 Hrs (IST) - World Time -

Pretoria: Apparently seeking to put behind themselves the controversy over Denel arms deal, India and South Africa yesterday(Oct 2,2006) decided to explore the possibility of joint research and development in the defence sector.

During their wide-ranging talks here, Prime Minister Manmohan Singh and South African President Thabo Mbeki agreedto work towards closer cooperation in the defence field.

The two leaders agreed to explore the possibility of joint research and development, a joint declaration issued after their talks said.

The decision is significant considering that bilateral defence cooperation in terms of procurement and supplies had been hit after corruption charges were levelled in the Denel deal of 2004.

Commenting on the controversy, Singh told a South African newspaper in an interview ahead of his South Africa visit, "There is no doubt a problem in this case of Denel. I hope ways and means can be found to resolve it."

The Prime Minister said there are many South African companies with which India has good arrangements for supply of equipment and relevant materials.

The defence relationship between India and South Africa goes much beyond a simple procurement relationship, he said, adding it includes training and peacekeeping cooperation.



The declaration noted South African government's appreciation for training provided by India on UN peacekeeping and operations of modern submarines.

New Delhi last year suspended all deals with state-owned Denel following allegations that it paid a British firm to obtain classified documents related to the sale of anti- material rifles to the Indian Army. All deals with the South African firm were also referred to the CBI by Defence Minister Pranab Mukherjee.

Denel, which has consistently denied that it broke any Indian or South African laws, emerged as a key supplier to the Indian armed forces after it provided much-needed 155mm howitzer shells during the 1999 Kargil conflict.

It was in negotiations with India to sell more 155mm shells and howitzers and to provide technology for an ordnance factory to be set up at Nalanda in Bihar.