Russia's state-owned nuclear company, Rosatom, says it will build at least 12 nuclear reactors in India.

The long-anticipated announcement came as Russian Prime Minister Vladimir Putin was in India for talks about arms and energy contracts.

Mr Putin said nuclear cooperation was one of the most important aspects in the partnership between the two countries which have strong trade ties.

Russia is already building two reactors in India.

It is competing with French and US firms for contracts to build nuclear power plants in Asia's third-largest economy which is looking to increase its energy supply to sustain rapid economic growth.

Coal still accounts for more than 50% of India's energy use - but a substantial expansion of nuclear power reactors is proposed over the next few decades.

Over the next decade alone, the contribution of nuclear energy is expected to rise from just 3% to 6% of India's total needs.

The two countries traditionally have had close links since Soviet times, with India remaining a top buyer of Russian weaponry.

However, the relationship faces new challenges, including competition from the West and the growing economic and military might of China.

Before Mr Putin arrived, a spokesman said the two sides were due to sign two deals worth more than $10bn on defence and civilian nuclear reactors and Russia will refit an aircraft carrier.

They will also try to boost bilateral trade, which is currently worth $8bn.

He said the two sides would hold talks on civilian nuclear energy, arms and production of telecom equipment.

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