DHAKA: Australian Prime Minister Tony Abbott Friday met his Indian counterpart Narendra Modi and finalised a long-awaited deal to allow the export of uranium to New Delhi for use in power generation.

The deal will be formally signed during a meeting this evening, when PM Abbott plans to gift a 'Nehru jacket' made of Australian wool to PM Modi, who in return will present him a copy of the Bhagwad Gita.

India and Australia kick-started negotiations on uranium sales in 2012 after Canberra lifted a long-standing ban on exporting the valuable ore to Delhi to meet its nuclear energy programme.

Australia, the world's third-largest producer of uranium, had previously ruled out selling the metal because India has not signed the Nuclear Non-Proliferation Treaty, reports NDTV.

Australian Trade Minister Andrew Robb, who is travelling with PM Abbott, said Canberra is now happy with India's precautions to ensure Australian uranium exports would be used only for peaceful purposes.

"We have satisfied ourselves that the steps (for appropriate safeguards) are in place," Mr Robb said this week.

"For us, Australia is a major supplier of resources, particularly energy necessary for our development needs," he added.

India, which is heavily dependent on coal for generating power, has 20-odd small nuclear plants with plans for more.

The deal with Australia would potentially ramp up those plans, as India struggles to produce enough power to meet rising demand and suffers crippling power shortages.

BDST: 1038 HRS, SEP 05, 2014