Top Indian and Russian military brass met in Delhi on Monday to iron out differences over hi-tech weapons deals caused by higher prices demanded by Moscow due to cost escalation and to work out a new framework for stepped up interaction between armed forces of the two countries.

Russian General Alexie Feodorovich Maslov, the commander- in-chief of land forces who is heading a high-level team, held wide ranging talks with his Indian counterpart General J J Singh.

The visit of the Russian military delegation is the first high-level contact between the two countries after Moscow demanded millions of dollars more for supplying Sukhoi-30 jets and the aircraft carrier Gorshkov during a recent visit by Defence Secretary Shekhar Dutt.

Russia had then cited cost escalation and a sharp drop in the value of the rouble as factors behind its move.

The stalemate caused by Moscow's demand are affecting a number of other deals, including those for more T-90 tanks and for the joint development and production of a 20-tonne multi-role transport aircraft.

Maslov is the first Russian army chief to visit India in the past eight years, a sharp contrast from earlier times when the two countries would witness high-level military visits at least two to three times a year.

The Russian general was briefed on India's security perspective at the army headquarters and he later visited the complex in the Cantonment area where the BrahMos missile, jointly developed by India and Russia, is produced.

Russia has proposed to India that joint exercises in anti-terrorism operations should be held to build on the rich experience of the two countries in low-intensity conflicts.

This exercise is likely to be held this winter on Russian soil, sources said.

"The details for such a joint exercise are being worked out," an Indian Army official said. Russian forces have considerable experience in anti-terrorist operations in Chechnya.

Maslov will also be the first high-ranking Russian military official to visit Jammu and Kashmir, where Indian forces are fighting militants and foreign mercernaries.

He will be briefed at the Northern Army Command's headquarters in Udhampur before he visits some forward posts along the Line of Control.

"The two sides will also discuss UN peacekeeping operations, to which both countries are major contributors," an official said.

Maslov and his delegation will also call on naval chief Admiral Sureesh Mehta and air force chief Air Chief Marshal Fali Homi Major and hold talks with Defence Secretary Dutta.

He is also likely to call on Defence Minister A K Antony.