India has signed a 960-billion-dollar contract with Russia for the upgrade of five squadrons of MiG-29 fighter aircraft which were inducted into the Indian Air Force in the mid- 1980s, DPA reported quoting newspaper reports Saturday. The upgrade of the Russian-made aircraft, which form the backbone of the Indian Air Force (IAF), would extend their life from the current 25 to 40 years and turn them into all-weather multi-role jets, the Times of India newspaper reported, quoting an unnamed senior air force official. Under the agreement signed between India's Defence Ministry and Russia's RAC MiG company, the first of the 69 MiG-29s with the air force would be upgraded in Russia, while the rest would be retrofitted at an IAF base in India, the official said. The upgrade is expected to be completed within three years. The upgrade would include multifunctional radar and a new weapon system. "The package will include state-of the-art avionics and cockpit ergonomics as well as fuel capacity increase," the official said. Some sub-systems would be sourced from Israel, he added. The upgraded aircraft would carry sophisticated air-to-air missiles, air-to-ground missiles and smart aerial bombs. RAC MiG would invest 30 per cent of the contract value in India by setting up consignment depots, service centres and simulator centres with training aids. India's number of fighter squadrons, each of which has 12 to 18 aircraft, has fallen below 30 and strategic experts say this places it at a disadvantage if it has to engage on two fronts. The IAF has identified a requirement of 44 squadrons to meet the contingency of a "full conflict" with Pakistan and a "dissuasive posture" against China, the Times of India reported. A simultaneous conflict with Pakistan and China would require 55 squadrons. The need to upgrade India's ageing fleet of MiGs as well as Jaguars and Mirage-2000s and induct new aircraft has assumed greater urgency with Pakistan readying to induct several F-16 aircraft from the United States and JF-17 fighters from China.