India to buy 12 rescue aircraft from Japan for $1.6 billion

India`s Defence Ministry will agree on Monday to purchase 12 amphibious rescue aircraft from Japanese manufacturer ShinMaywa Industries worth $1.5 billion-$1.6 billion, the Nikkei news paper reported on Sunday.

Japan and India have been holding talks on the purchase for more than two years. It would one of Japan`s first sales of military equipment since Prime Minister Shinzo Abe lifted a 50-year ban on arms exports and it reflects growing defence ties between the two countries.

India`s Defence Ministry will approve the purchase of 12 US-2 aircraft at a Defense Acquisitions Council meeting scheduled for Monday, the Nikkei reporting, citing senior ministry officials it did not name.

The deal will be included in a memorandum of understanding to be signed during Indian Prime Minister Narendra Modi`s visit to Japan from Thursday to Saturday, the Nikkei said, citing the officials.

During the visit, Abe will also urge Modi to expand its usage of Japan`s high-speed train technology, the Nikkei reported.