India and Israel are expected to talk about the deal to provide two new Airborne Early Warning and Control Systems (AWACS) 'eyes in the sky', worth Rs 7,000 crore. The agreement has been fixed for over a year now because of sudden price climb.

In the earlier agreement signed in 2003-04, India had got hold of three AWACS systems within which the Russian Ilyushin-76 aircraft were outfitted with Israel-made refined radars at the cost of $1.1 billion (over Rs 7,035 crore) to carry out close watch of rival aircraft, drones, and cruise missiles at ranges up to 400-500 km contained by their territory.

A senior government source told that the price of the two new AWACS has been quoted to be over USD 1.25 billion (Rs 8,000 crore) by the vendors as they have risen for much more compared to the cost of the three planes purchased previously. It cannot be approved to, and that is why the programme has been held up,".

The deal is now likely to be thrashed out throughout the meeting of the two Prime Ministers.

India is also strong-willed to expand its own AWACS since the DAC has given approval to a proposal to get hold of two Airbus-330 planes and build an AWACS, which can afford 360-degree surveillance similar to the Israeli radar.