ZHUKOVSKY, August 21 (RIA Novosti) - Rosoboronexport and Hindustan Aeronautics Ltd (HAL) have signed a contract at the MAKS-2009 air show on the delivery of 26 RD-33 series 3 engines to India, Russia's state arms exporter said on Friday.

The RD-33 series 3 is an upgraded version of the RD-33 powerful RD-33 turbofan engine with thrust vectoring for MiG family fighters. The engine provides superior maneuverability and enhances the fighter's performance in close air engagements.

In 2005, Russia signed a $250 million deal with India to modernize engines for the MiG-29 fighters of the Indian Air Force. According to the terms of the deal, HAL will make 120 RD-33 series 3 jet engines at its Koraput plant for the upgrade of MiG-29 fighters.

The current contract will help HAL master the assembly of the RD-33 jet engines and use the experience in the assembly of next generation jet engines.

"These engines are installed on MiG aircraft, including the MiG-35 fighters, which are participating in the announced tender on the delivery of 126 fighters to the Indian air force," a Rosoboronexport official said.

Six major aircraft makers - Lockheed and Boeing from the United States, Russia's MiG, which is part of the UAC, France's Dassault, Sweden's Saab and the EADS consortium of British, German, Spanish and Italian companies - are in contention to win the $10 billion contract.

Russia has said that the first two MiG-35 aircraft will be delivered to India in August for test flights prior to the results of the tender. In late 2009, Russia will conduct a series of flight tests with live firing for an Indian air force delegation at a testing ground in Russia.

Moscow has also said it is ready to transfer all key technology to India's Hindustan Aeronautics Ltd. and provide assistance for the production of the aircraft in the country if MiG-35 wins the tender.