Banning IAI may cost dear

If the past experience is any indicator, when charges of corruption in defence deals are made in India, all dealings with the company involved are suspended.

This happened with South African company Denel which was to supply 300 towed howitzers for the Arjun tank.

But India will have to incur a heavy cost if it decides to ban the Israel Aircraft Industries (IAI), a consortium of groups providing a bouquet of defence equipment.

During Defexpo 2002, India's biannual defence exhibition, a clutch of agreements were signed between IAI and India's Hindustan Aeronauticals Limited (HAL).

Under these, HAL was to have supplied work packages for IAI's conversion of Boeing 737 aircraft from passenger to cargo. This was to take place at IAI-Bedek Aviation Group's facilities in Israel. India already has an agreement to jointly produce unmanned air vehicles and fast patrol boats with IAI.

The first locally built Israeli Super Dvora Mk II fast attack craft (FAC) at Mumbai has already been commissioned for deployment in anti-insurgency operations.

But what is not known is the fate of the private sector companies that had signed projects for R&D with IAI, the end user being the Indian defence forces.

For instance, since 2002, Mahindra & Mahindra has been assisted by IAI in installing night vision and surveillance devices on its vehicles that are then supplied to the Indian Army. This is an ongoing project.