M A I N   N E W S

Hawk deal finalised, says George

London, July 31
India has finalised the price for the purchase of 66 Hawk trainer jets from UK-based BAe Systems and the deal is “much closer now”, Defence Minister George Fernandes has said.

“It is much closer in the sense that the price negotiating committee has completed its work and the matter is now coming before the Cabinet,” Mr Fernandes told Channel 4 News yesterday.

The deal — estimated to be worth about £ 1 billion — now only requires the approval of the Indian Cabinet, which is due to discuss it next month.

A spokesman for BAe Systems declined to comment on Mr Fernandes’ remarks.

Negotiations over the order have been going on for more than 15 years but had recently been stalled on the issue of price. British Prime Minister Tony Blair was reported to have attempted to help break the stalemate during his visit to India earlier this year.

Some of the jets are expected to be built in Bangalore.

The IAF needs to place an order because the older Russian MiGs that it has been using as trainers have outlived their utility and have a high accident rate.

In the absence of new trainers it will have to use the next generation MiGs and take them out of operational service. At one stage India was also considering opting for a Czech-built plane rather than the Hawk.

India is to acquire 66 Hawk-100 AJTs, 23 to be delivered in semi-knocked down condition and the rest to be assembled in India by the Hindustan Aeronautics Limited under licence.

Though the minister did not spell out the total cost involved in the purchase, British Aerospace had earlier quoted a package deal of Rs 4,200 crore.

According to indications, the deal had finally come through when the British company offered a final 10 to 12 per cent price reduction.

The deal also envisages the Royal Air Force undertaking training of Indian pilots.

The IAF had initially projected urgency for the acquisition of an advanced jet trainer way back in 1984, saying that pilot training for medium trainers and supersonic jet fighters was suffering in the absence of such planes. UNI