Giving a boost to Indo-British defence ties, India on Wednesday inked a 700 million pound (Rs 5,200 crore)-deal for purchase of an additional 57 Hawk Advanced Jet Trainer Aircraft from British Aerospace Systems (BAE).

This is the second tranche of the purchase by India since 2004 when it had finalised a deal to buy 66 HAWKs.

The signing ceremony was witnessed by visting British Prime Minister David Cameron, Hindustan Aeronautics Limited Chairman and Managing Director Ashok Nayak and Karnataka Minister for Home V S Acharya.

“This is an outstanding example of India-UK defence and industrial partnership. The agreement will bring significant economic benefits to both our countries. It is evidence of our new, commercial foreign policy in action,” Cameron said on the occasion.

Of the 57 Hawks to be manufactured at HAL’s facility, 40 would be inducted into IAF and 17 into the Navy, BAE System Managing Director & Chief Executive (India) Andrew Gallagher told reporters.

This is the first time that the Indian Navy is getting HAWKs, he said.

The deal was signed by HAL Dierector, Corporate Planning P Sounder Rajan, BAE’s Group Managing Director Guy Griffths and Rolls-Royce Sales and Commercial Director Chris Awade.

Awade said Rolls-Royce, which supplies engines to BAE sytems, would supply components to HAL which would produce engines for Hawks.

The terms of the contract were also inked today, he said.

Under the first deal which involved purchase of 66 Hawks, 24 are to be flown from BAE and the remaining 42 manufactured by HAL which has so far built 15 of them.