"Honeywell Aerospace (NYSE: HON) has signed a licensing agreement with Tata Power's Strategic Engineering Division (SED), enabling it to produce Honeywell's Tactical Advanced Land Inertial Navigator, or 'TALIN' in India," Honeywell said in a statement here.

The agreement, announced during Prime Minister Narendra Modi's ongoing US visit, will mark the first time India has produced inertial land navigation technology, the statement added.

This technology enables vehicles and artillery to navigate very precisely, even where GPS satellite guidance is not available, the company said.

According to Honeywell, more than 15,000 TALIN systems are currently operating on more than 60 military and commercial platforms worldwide.

Honeywell will license the design and hardware to assemble, test and eventually build the production kits for the navigation system in India.

The NDA government has recently approved raising the amount of foreign direct investment allowed in the defence sector to 49 percent from 26 percent.

Moreover, Modi's pet initiative to boost foreign and domestic investment, "Make in India" was launched on Thursday when he left on his US tour.

Rahul Chaudhry, chief executive of Tata Power SED, said in the statement that the technology-sharing arrangement "will offer the Indian armed forces a state-of-the-art inertial navigation technology, made in India and with local product support."

"Our strategic agreement with Honeywell supports Tata Power SED's commitment to the 'Make in India' initiative - a priority for India's new government," he added.

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