India pledged on Wednesday to strike a deal soon on joining the European Union's multibillion-dollar satellite navigation system project, but it declined to spell out how much it would invest.

"We have had a preliminary discussion on our participation in the Galileo project," Indian Prime Minister Manmohan Singh told a news conference after meeting senior EU officials. "Further discussions will be held to operationalize this arrangement."

EU officials said India had effectively put aside earlier misgivings -- which were largely over the level of commitments it may face in the future -- and agreed to go ahead, but further talks would be needed to settle on its initial investment.

"The Indian side agreed to join ... they are now ready to sign, but it will only be at a second stage that we talk about money," one said.

Galileo, a European version of the already existing U.S. Global Positioning System (GPS) which has wide military and civilian uses, is scheduled to become operational in 2008.

China has already put up 230 million euros ($296.2 million) to join the project, Israel has agreed to take part and discussions on participation are taking place with Russia, Brazil, South Korea, Mexico and Australia.

India had originally spoken of contributing 300 million euros to the project but the EU officials said it was now more likely to be 150-200 million.

The EU and New Delhi said in a joint statement that India would have an "equitable participation" in Galileo's space, ground and user segments and would guarantee highest-quality signals over Indian territory.

"Considering that India has well proven capabilities in space, satellite and navigation related activities, the agreement will provide an important positive impulse for Indian and European industrial cooperation in many high-tech areas."

The EU reached a landmark agreement in February with the United States on radio frequencies to enable Galileo to work alongside GPS, dispelling severe reservations in the Defense Department and NATO.

Galileo's planned system of 27 satellites has a range of potential uses from guiding cars and ships or landing military aircraft to precision positioning in engineering projects.

The EU's executive Commission forecasts Galileo will create some 150,000 jobs and generate service and equipment contracts worth more than $10 billion a year, making it the continent's most lucrative infrastructure project.($1=.7764 Euro).

(From Reuters, November 08, 2004)
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