The Hindu : Foreign defence firms vie for orders

Online edition of India's National Newspaper
Sunday, Feb 24, 2002

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Foreign defence firms vie for orders

By Sandeep Dikshit

NEW DELHI FEB. 23. The Defence Exposition here has offered an ideal platform for foreign defence companies, backed by their countries, to push their wares in post-sanctions India.

While Russian companies are striving to retain their dominance of the Indian defence market, the lifting of sanctions has encouraged European and American companies make a new beginning.

The key to catching the ears of defence planners and the media is the offer of ``joint ventures'', `long term strategic partnerships' and `technology transfer'. On Friday, the penultimate day of the exposition, the Czech Republic and France made similar offers while the Americans went all out to offer their military hardware.

The visiting Czech Deputy Defence Minister, Ing Josef Jehlik, renewed his country's offer of the Advanced Jet Trainers (AJTs) thus locking horns with the diplomatically-muscular British and Russia which are in the race. The entry of the Czechs has made the contest bitter as the multi-million dollar order for 100 AJTs is bound to tilt the fortunes of the company concerned as all manufacturers have virtually blank order-books.

While the Russians claim that their MiG-AT ``can fly'', the British would like their AJT ``Hawk'' to appropriate the privilege of being the most techno-savvy equipment on offer. The Czechs assert that 36 of the Boeing-backed L-159 Light Combat Aircraft (LCA), which can also double as AJTs, are already operational. ``Our LCA fulfills all NATO standards,'' said Mr. Jehlik. The Czech offer of three dozen L-159s is backed by the offer of armaments, training and logistical support. ``We are also ready for cooperation with Indian companies,'' he said. Having separated from the Russian-promoted Warsaw Pact countries, the Czechs are now hoping for a fresh beginning in diverse areas, including integrated air command and control system, upgrading of T-72s and ordinance. Since most of the Indian armed forces' weapons and ammunition inventory is of Russian origin, the Czechs feel compatibility will not be an issue.

Self-assured with the possibility of bagging the largest-ever submarine deal with India, the French are now proposing a ``long-term partnership'' which could also include barring arms sales to Pakistan. Senior officials hinted at impending orders for six Scorpene medium-sized submarines and ``transfer of technology'' for building another six submarines in India. Jointly developed with a Spanish company — which reflects the increasing trend of mergers and alliances in the armaments market — Scorpene has the latest combat systems. The French are now hoping to extend the partnership further by helping India develop an aircraft carrier.

The Americans, who have dispatched their top military officer from the sales unit, on Friday readily agreed to hold field trials to enable the Indian Army evaluate the Raytheon-manufactured Weapon Locating Radars (WLRs). Major General Bruce Scott, who is personally leading the U.S. bid to push the first sale of a U.S. weapon to the Indian Army, interacted with the top Defence Ministry officials. Giving them competition are the Ukrainians, whose IL-220 WLR was short-listed by New Delhi. Also in the wings is the original favourite, the German-made COBRA WLR, which failed to arrive because of the imposition of sanctions.

The South African Defence Minister had led Johannesburg's sally while six Swedish companies also asserted their presence in the exposition and sought revival of the defence partnership with India, which had broken up after the Bofors controversy. Israel and Poland too want to expand their modest presence.

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