NEW DELHI, Sept. 6 (Xinhuanet) -- India is likely to sign an agreement to participate in an European Union (EU) promoted ambitious satellite-based navigation system during a summit beginning in New Delhi Wednesday, Indo-Asian News Service (IANS) reported Tuesday.

    The EU has been discussing with India its participation in the Galileo project for the last couple of years. A formal agreement is likely to give a major boost to their economic and political ties, IANS said.

    The final text of the agreement for the project is likely to besigned at the sixth India-EU summit, said a New Delhi-based official source involved in the project negotiations.

    British Prime Minister Tony Blair is heading a high-level delegation that will take part in the India-EU summit.

    Experts say India, with its edge in the technology domain, willbe able to significantly contribute to the Galileo satellite positioning and navigation services system that is being positioned as a rival to the US Global Positioning System.

    The Galileo project is a joint initiative of the EU and the European Space Agency. The EU says the growing requirements of global coverage cannot be met by a single satellite system alone.

    Conceptualized in 1999, the Galileo program is likely to cost 3.4 billion euro when it becomes operational in 2008. China and Israel have already signed for the project.

    According to an EU official, India, with its vast geographical area, stands to benefit significantly from the Galileo project that will comprise a constellation of 30 satellites.

    The official said the Galileo program was being developed as a civil project for civil purposes. It can be used for traffic management, mobile telephony and exploration of oil and minerals.

    India agreed to participate in the Galileo program at the end of the fourth India-EU Summit in 2003.

    China has committed an investment of 200 million euro in order to finance specific activities in the development and deployment phase of the navigation system.

    Besides India countries like Canada, Russia, Argentina and South Korea were also likely to enter into formal agreements to participate in the program.

    India's participation in the high-profile project will significantly enhance its status as a strategic partner to the 25-member European Union region.

    European Union is one of the largest trading partners of India.In 2004, India exported 16 billion euro worth of goods to the EU, while import was to the tune of 18 billion euro.     Enditem