M A I N   N E W S

Defence deals: US offers to match India’s ally Russia
Ajay Banerjee/TNS

New Delhi, July 23
The US today virtually offered to match India’s 50-year-old ally Russia in matters of multi-billion dollar defence deals. It has offered high-end technology, latest equipment and even a promise to change its stringent technology-transfer rules to accommodate New Delhi’s growing ambitions.

The corner stone is India’s surging defence equipment demand that will induce a spending of around $80 billion over the next 6-7 years.

Deputy Secretary of Defense, USA, Ashton B Carter laid out a plan as he spoke on “Joint Vision for US-India Defense Cooperation” at a function organised by the Confederation of Indian Industry (CII) this afternoon. In the morning, he had called on Defence Minister AK Antony and top-brass of the Defence Ministry.

“We want to knock down any remaining bureaucratic barriers in our defence relationship, and strip away the impediments. We want to set big goals to achieve,” Carter said while addressing Indian audience comprising strategic thinkers and industry representatives.

“India deserves the best military equipment available and we are prepared to help. Practically, we want to be India’s highest-quality and most-trusted long-term supplier of technology,” Carter said without naming Russia, which is dominant in military equipment sales to India. Over the past few years, Russia has leased a nuclear-powered submarine to India; sold a sea-borne aircraft carrier; co-developed a supersonic missile and is now co-developing a new fighter jet and a transport aircraft.

“We are looking at cooperating and not trade. It is not a buyer-seller relationship… India is top priority in our export considerations. New efforts will help us respond more rapidly to India’s requests for US equipment and systems - particularly for more advanced technologies,” Carter said. “We are improving our government’s overall export-control system”, India can make some changes too by raising its FDI ceiling from the present 26 per cent to 49 per cent.

Knowing that India and the US may not see eye-to-eye on many issues, Carter said, “We have long-term interests, if not always common approaches, like Syria and Iran” and went on to suggest “a joint vision for the US-India defence cooperation”.

Carter also clarified on the rebalance the US just announced. It plans to shift its forces eastwards towards the Asia-Pacific region. Both, India and China have not taken kindly to the announcement. He said, “Rebalance is not about China or the United States or India or any other single country or group of countries.”

on offer

• High-end technology
• Latest equipment
• A promise to change US technology-transfer rules

MoD clears Rs 12,000-cr proposal for 56 planes
Tribune News Service

New Delhi, July 23
The Defence Acquisition Council (DAC) headed by Defence Minister AK Antony today cleared the purchase of 56 small transport planes having capacity of eight to 10 tonnes to replace the ageing Avro-series of planes in the IAF inventory. It will cost around Rs 12,000 crore.

The foreign vendor, who will win the bid, will have the option to tie up with public sector company like Hindustan Aeronautic Limited (HAL) or some private player. Leading Indian company like Tata already has a joint venture in which the company will produce components for US major Lockheed Martin. Reliance is another Indian company that has launched an aerospace company.

HAL has so far been the Indian partner for all foreign companies - be it for Sukhoi 30-MKI or the forthcoming 126 medium multi role combat aircraft (MMRCA).

The second important part of today’s decision is the gradual Indian production of the plane. The first 16 of these transport planes will be purchased in a fly-away condition, the next 16 will have 30 per cent indigenous content while the rest will have 60 per cent local content.

Sources in the ministry said a global request for the proposal will be issued. India and Russia have already signed an agreement to co-develop a medium transport plane having the ability to carry 25 to 30 tonnes.