New Delhi: Defence Minister Manohar Parrikar on Wednesday held talks with his French counterpart Jean-Yves Le Drian at South Block here.

During the meet, the duo discussed matters that were taken up during Prime Minister Narendra Modi's visit to France last month. These included negotiations for the acquisition of 36 Rafale fighter aircraft.

The two ministers discussed modalities in order to reach an early conclusion of an Inter-Governmental Agreement, issued by the PM during France visit, on the subject. The two sides decided to set up teams to work out the details in a time-bound manner.

Drian arrived here late last night after his visit to the United Arab Emirates, Qatar and Saudi Arabia.

This trip of Drian follows the 14th edition of the "Varuna" exercise between Indian and French Navies, conducted from April 28 to May 2, off India's western coast with the carrier battle groups of the two countries.

French defence major Dassault Aviation, manufacturer of Rafale, is likely to enter into a joint venture with state-run HAL or any private player to set up a base here for augmenting its existing production line in Merignac in France, defence sources had said.

The deal is estimated to be over USD 6 billion and will have about 30-50 percent offset.