US bids for big military contract in India

INDIA: US DEFENCE secretary Robert Gates arrives in New Delhi today to push India for lucrative American military contracts and to bolster diplomatic and political ties strained by the standoff over a bilateral civilian nuclear deal.

Gates's visit comes ahead of next month's deadline for US defence companies Lockheed Martin and Boeing, competing with Russian and European rivals, to submit bids in support of an Indian Air Force requirement for 126 combat aircraft valued at $10 billion (€6.7 billion).

Gates is also expected to discuss the long pending US-led container security initiative and the stalled logistic-support agreement that permits the two militaries reciprocal use of facilities for maintenance, servicing, refuelling, communications and medical care.

Military officials in Delhi said possible American arms purchases would help "pacify" Washington, frustrated at India's apparent climbdown over a civil nuclear deal with the US that allows it to retain its active atomic weapons programme, whilst staying out of the Nuclear Non-proliferation Treaty.

The agreement is in jeopardy following opposition to it from Communist MPs crucial to the survival of prime minister Manmohan Singh's Congress Party-led federal coalition.

The leftists view it as a "hegemonistic" ploy by the US to "enslave" India.

"If the India-US civilian nuclear deal collapses, it will not impact on the growing military ties between the two countries. In fact, I see them (military ties) growing," former defence secretary William Cohen declared at the recently concluded international defence exhibition in Delhi at which American armament companies were well represented.

Since 2002 India has acquired artillery-locating radar, a refurbished 16,900-tonne troop ship and six surplus Sea King helicopters to operate off it, and engines for its locally-designed light combat aircraft programme still under development.

But last month it approved the acquisition of six Lockheed Martin-built C-130J Hercules military transport aircraft for $1.02 billion and is presently in advanced negotiation to buy eight Boeing-manufactured maritime reconnaissance aircraft worth over $2 billion.

Several US companies are readying themselves to bid for a joint services demand for nearly 350 multi-purpose helicopters, the tender for which is expected soon, warships, anti-ballistic missiles and Special Forces equipment as India strives to replace its Soviet and Russian arsenal that has reached obsolescence.

© 2008 The Irish Times

This article appears in the print edition of the Irish Times