US and European-assisted Indian defence projects like the Light Combat Aircraft and the Arjun battle-tank will escape any sanctions as the technology has already been transferred by the foreign companies involved in the projects.
Sources said the LCA project which is undergoing engine ground tests in Bangalore, the last of the tests before flight trials had acquired engine and the flight control system technology from General Electric and Martin Marietta, respectively of the US.
The sources said the LCA prototype would fly with two GE engines that have been delivered to the Defence Research and Development Organisation (DRDO). Similarly, design consultancy for the flight control system was obtained from Martin Marietta though the actual system was developed indigenously. The system was tested in the US on an F-16 in-flight simulator.
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The DRDO has a deal with GE to supply engines for the prototype testing of up to four planes. The production versions are to be equipped with indigenous engines based largely on the GE design.
The engine for the Arjun battle-tank is sourced from Daimler Benz AG of Germany. The Arjun has entered production stage with an order to manufacture 50 tanks. India is sourcing engines for these from Germany in a deal worth over Rs 15 crore.
Under the US-India defence cooperation deal of five years ago, the US had agreed to provide certain technology for conventional weapons and testing and evaluating equipment.
Sources said it was too late for the US to do anything about the LCA it is far too advanced and the commercial interests of two of its major defence companies are involved. The LCA may be kept out of any sanctions that the US government might impose.
India is also sourcing components and technology for some of its other defence projects like the remotely piloted spy observation aircraft and the advanced light helicopter (ALH). The ALHs engines come from Allied Signals of the US and Turbomeca of France. The US already has restrictions on high-technology exports and fresh sanctions will not have much impact.