Speaking at the end of a four-day weapons fair in New Delhi, Izhmash JSC said it was negotiating with India on the local production of the guns to equip India's ill-armed security establishment.

"India should use high quality original AK rifles to defend its territory instead of cloned AK series weapons produced by some other countries," Izhmash JSC's foreign economic activity director Alexander Zavarzin said.

India needs hundreds and thousands of combat weapons for its police forces and paramilitary agencies as well its million-plus army.

But up to now India has been buying Kalashnikovs from a country which did not hold a valid licence to produce the weapon, he said, without naming the supplier.

The company, which has already signed a contract to arm the Venezuelan army with 100,000 Kalashnikovs made locally under licence, gave no further details on the prospective deal with India including its possible value.

Officials at Izhmash JSC have in past estimated their losses at around 360 million dollars a year because of copies produced in Bulgaria, China, Poland and the United States.

The legendary AK-47 has proved popular around the world for its ruggedness, reliability and ease of use.

Russia last year did arms deals worth 14.5 billion dollars with India, its former Cold War ally, and remains the country's top defence supplier -- although the New Delhi DefExpo2008 saw an increased presence of US firms.

With ties between New Delhi and Washington improving, Indian officials have confirmed US aircraft giant Lockheed Martin will be awarded a one-billion dollar contract for six Hercules transport planes.

The Indian navy is also looking at eight long-range maritime reconnaissance planes from Boeing, in a deal potentially worth two billion dollars, reports say.

And Boeing and Lockheed Martin are also competing against the Russian MiG-35 and MiG-29, Saab's Gripen and Dassault's Rafale and Mirage for a 10-12 billion dollar deal to sell 126 fighter jets to India. The bidding ends March 3.

Nuclear-armed but technology-hungry India is now the top arms buyer among emerging nations and is expected to shell out 30 billion dollars over the next four years.

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