Moscow, Apr 18 (IANS/RIA Novosti): Iranian Defence Minister Ahmad Vahidi has said the country was making progress in the development and manufacture of an indigenous version of the Russian S-300 air defence missile system.

"The production of an alternative missile system is underway," he told the Fars news agency, adding that the work "has yielded good results".

Iranian military officials said the missile system, called Bavar (Belief) 373, is even more powerful and more advanced than the Russian S-300.

An $800-million contract to supply Iran with the missile system was signed in 2007. Russia was to deliver five S-300PMU-1 battalions to Tehran.

However, in September 2010, Russian President Dmitry Medvedev signed a decree terminating the contract in line with UN Security Council Resolution 1929, which bans supply to Iran of conventional weapons including missiles and missile systems, tanks, attack helicopters, warplanes and ships.