MOSCOW: Removing a long-pending irritant, India and Russia have agreed on utilization of the rupee debt fund and signed an accord for development and production of a multi-role transport aircraft but a crucial pact on setting up four nuclear reactors in Tamil Nadu remained elusive.

The breakthrough on the rupee debt fund, a legacy of the Soviet era relations, totaling a whopping Rs 8,000 crores for investments and trade in Russia came during a summit meeting between Prime Minister Manmohan Singh and President Vladimir Putin at the Kremlin held in the backdrop of reports of chill in bilateral relations.

The two countries signed an agreement for joint development and production of a new transport aircraft to replace the aging AN-32 fleet of the Indian Air Force. The total investment for the project will be USD 600 million to be shared on 50:50 basis by both the countries. With hitches dogging an agreement for four more Russian-built nuclear reactors in Kudankulam in Tamil Nadu, the two sides left it for a future date as they signed four other pacts. In his first public comments on the problems in the agreement on Kudankulam, Prime Minister told a press conference with Putin that the inter-governmental agreement on the issue "is a work in progress".

The agreement was widely expected to be signed during the current visit but apparently the stalled Indo-US nuclear deal has cast a shadow. The two leaders met for over two hours, perhaps the longest interaction they had in all their meetings so far, and Foreign Secretary Shiv Shankar Menon described it as "very good".

This was one of the shortest visits by an Indian Prime Minister to Russia lasting around 28 hours. With Putin by his side, Singh said India looked forward to expanding cooperation with Russia in civilian use of nuclear energy. He thanked Moscow for its "steadfast support in supplementing India's nuclear energy program and its assistance in lifting International restrictions on nuclear cooperation with India that are still in place."

 Russia wants India to firm up a safeguards agreement with International Atomic Energy Agency (IAEA) and secure changes in the guidelines of the 45-member Nuclear Suppliers Group (NSG) to allow nuclear commerce with India.

To a question on the Indo-US nuclear deal, Singh said the process of evolving a broadbased consensus with the coalition partners was still on. India and Russia enjoyed extensive cooperation in peaceful uses of nuclear energy, Singh said recalling that the two countries had signed a Memorandum of Intent during Putin's visit to New Delhi in January this year. Putin, on his part, said Russia was a "reliable partner" for India in its quest for nuclear energy for civilian purposes. Putin announced that a joint task force will be set up to expand ways for overall economic cooperation. It will be headed by the Russian Minister for Economic development and the Indian commerce minister.-