Arms manufacturer Kangnam is to export eight Korean-made minesweeper boats to India and transfer related technology.
The firm has been making so-called mine counter-measures vehicles since the 1980s and provided the Korean Navy with a dozen of them. They are used to detect and destroy underwater mines.
The Defense Acquisition Program Administration confirmed that the Indian government selected the Korean firm as the priority negotiating partner in January last year and the contract is now being finalized. It is worth US$500 million.
Two of the eight will be built by Kangnam and India's Goa shipyard will build the rest with the Korean firm's technology.