India and the United States are close to signing an agreement under which their armed forces will provide each other logistics support on a reciprocal basis even as New Delhi may bid to buy another American amphibious warship.

A logistics support agreement is in the final stages, said top Pentagon officials now on a visit to the country. They also said that Washington had offered the giant landing ship, USS Nashwill, to the Indian Navy.

"We have put the offer to the Indian Navy," Lt Gen Jeffrey B Kohler, director of the Defence Security Cooperation Agency in the US defence department told media persons. The amphibious warship is of the same class as the 17,000 ton USS Trenton that was bought by the Indian Navy.

Referring to the logistics support agreement, Kohler said the accord had been put up to the Cabinet Committee on Security. The Americans usually describe such a pact as an 'acquisition and cross-services' agreement.

It was listed as a logistics support agreement at the suggestion of India, he said.

"The agreement will ease joint operations by the armed forces of the two countries during exercises and in coming to the aid of people struck by natural calamities," Kohler said, making it clear that the accord did not in any way imply the stockpiling of weapons on each other's soil.

"The armed forces of the two countries are having frequent interactions and face immense difficulties by way of fuel supplies and other logistics. With such an agreement in place, it would ease things for both militaries," he said.

The US has signed similar agreements with 65 countries, including a recently concluded pact with India's neighbour Sri Lanka [Images].

Referring to the warship Nashwill, Kohler said the vessel recently underwent a major overhaul in the US. Once Washington received a response from New Delhi, which Kohler said he believed 'is on its way,' the American authorities will approach the US Congress to clear the sale.

Kohler said talks were also being held with the navy for supplying sub-systems and strategic components for India's new range of warships.

Asked about progress in talks for the sale of the Patriot III anti-missile system to India, the US officials said though New Delhi was participating as an observer in the development of the new system, it had not indicated any preference for the equipment as yet.

Kohler was accompanied to India by Rear Admiral Jeffrey W Wieringa, who will succeed him soon.

The officials held parleys with top officials, including Defence Secretary Shekhar Dutt, Defence Production Secretary K P Singh, Director General (Acquisitions) S Banerjee and senior navy and IAF officers.

They said US armament majors were keen to enter the Indian arms market in a 'big manner.'

These companies have frontline technology and want to compete in all major defence procurement deals, 'ranging from fighters to naval warships and systems, missiles to land systems,' they said.

Asked whether the US is ready to take on the 50 per cent direct offsets that India has announced for the jet fighter deal, Kohler said: "The US government is not involved. It is up to our companies to take on the challenge."

There are no offsets in US defence purchases, but the 50 per cent offsets announced by India would prove a challenge for any company bidding for the deal, the officials said.

On the delay and price escalation in the sale of the USS Trenton, the US officials said this was due to some extra work ordered by the Indian Navy.