Assure supply, US told

Defence Minister Pranab Mukherjee said future defence aviation procurement would be linked to the willingness of the suppliers to transfer technology and offer outsourcing contracts to Indian firms such as HAL, on Day 1 of the Aero India 2005 here on Wednesday.

Money for the deals does not seem to be a problem. In the nine months to December, "we have already spent 73 per cent of this year's defence budget, including Rs 26,000 crore under the capital budget head", Mukherjee told reporters.

Plus, more is coming. The minister hinted that India's defence budget will be hiked, but "no finance minister worth his name will simply agree to everything his colleagues demand. There will be discussions and without touching off an arms race, we will ensure that our armed forces get state-of-the art equipment," he said.

On buying more defence equipment from the US, including fighter aircraft, the minister said, "Any supplier in general has to assure us dependability of supply and transfer of technology. We don't want to be victims of the national laws of another country."

He was "glad that the US has shown interest in the Aero India show" and the government would hold discussions with them "on defence procurement".

India might be prepared, under the right conditions, to buy defence hardware from the US as "no position (such as the Washington's unease over India's nuclear doctrine) is irreconcilable.

The Pressler amendment was amended for a one-time waiver to meet some commitments to another country", he recalled, referring to the intended sale of US F-16 fighter aircraft to Pakistan.

India's nuclear policy, which had been clearly spelt out, would be less of an obstacle in procuring arms from the US, but "sometimes the US administration is compelled to impose sanctions on some countries".

Earlier, the defence minister said, "There is tremendous scope for outsourcing from India. This event would provide the opportunity for exploring possibilities."

The Indian aviation industry was one of the largest in Asia, with capability in manufacture and maintenance of aircraft, engines, accessories and avionics.

The country's strategy for self-reliance had resulted in the development of materials, advanced alloys, composites, process technologies and aircraft equipment.

The Indian aeronautical industry was not only concentrating on military aircraft production, but also had dedicated facilities for commercial aircraft manufacture and maintenance.