India is developing Agni-III, a long-range surface-to-surface missile capable of carrying nuclear warheads, Defence Minister George Fernandes said on Saturday.

"The test-firing of Agni-III is overdue and we feel the need for that long-range missile as part of our policy of deterrence," he said.

India is trying to test the missile this year, he added.

Agni-I [700km range] and Agni-II [2000km range], which are capable of carrying nuclear weapons, are 'available for deployment', he said.