New Delhi: The Indian Air force is on a revamp mode. It has decided to buy missiles worth USD 1.2 billion from France for its key fighter planes Mirage-2000. The Cabinet committee has cleared the proposal of acquiring 500 MICA missiles from France.

According to sources close to the Defence Ministry, in a meeting held on Wednesday, Prime Minister Manmohan Singh approved the proposal of buying 490 MICA (interception and aerial combat missiles).

The MICA missiles will be fitted on IAF's 51 Mirage-2000 fighter jets. According to the provisions of the deal, French armament manufacturing company MBDA will have to invest 30 percent of the cost in the Indian defence area.

The foreign investors acquiring tenders worth more than Rs 300 crore will have to invest atleast 30 percent in Indian defence, civil aviation and national security.

The entire Mirage fleet is being upgraded at the present.

In early 2011, India signed a deal with French companies Dassault Aviation and Thales to upgrade and develop the Mirage-2000 fighter jets which were bought in the eighties.

According to the Defence minister A K Antony, the upgradation project of the fighter jets will be completed in a decade.