Ajai Shukla / On board the INS Shivalik, Mumbai Mar 06, 2009, 00:08 IST
If the United States ranks near the bottom amongst India’s defence suppliers, Washington’s penchant for imposing sanctions and restrictions has much to do with it. Now, the US appears to have shot itself in the foot again. The Indian Navy chose to power its indigenously designed, cutting-edge stealth warship, the INS Shivalik, with gas turbines from American company General Electric (GE). But even as the Shivalik readies for sea trials, the US State Department has ordered GE to stop all work on the turbines it has supplied.
Vice Admiral HS Malhi (Retired), chairman and managing director of Mazagon Dock Limited (MDL), which built the Shivalik, has confirmed to Business Standard that GE has received instructions to stop operationalising (making ready for operations) the two new LM 2500 gas turbines that it supplied for the Shivalik. GE has told MDL that there could be up to three months delay, while the new US administration reviews its military relations with several countries. India is not alone in facing this ban; GE has been told to stop work even with close US allies like the UK and Australia.
MDL has clearly been taken by surprise. Says Admiral Malhi, “It is quite surprising that such a letter has been received from GE. They said the (US) State Department could take up to 3-4 months to re-look at relations with these countries. We don’t have that kind of time; we have to deliver the ship to the navy.”
The Shivalik stealth frigate is powered by four engines, in what is termed a CODOG (COmbined Diesel Or Gas) arrangement. Normal operations are powered by two Pielstick diesel engines, supplied by France. The gas turbines kick in for short bursts during combat, when extra power is needed. They are less fuel-efficient than diesel engines, but provide high performance. This is the first time that US turbines have been installed in an Indian-built frigate.
MDL is now exploring whether it can use another GE subsidiary to operationalise the Shivalik’s turbines, without invalidating GE’s warranty. According to Admiral Malhi, “If GE allows us to use one of its licensees, the delay can be cut down to a month. GE is not averse to that, as long as no American person is involved in the work.”
GE has not responded to an email, asking for details of this delay. The US State Department has also ignored a request for information. A spokesperson of the US Embassy in New Delhi has sidestepped the question, replying by email that, “The State Department has not instructed GE in the conduct of this direct commercial sale. Aspects of this sale were subject to export licensing, which is conducted through the State Department.”
When asked to comment specifically on blanket orders from the State Department to GE regarding commercial defence dealings with India, the US Embassy did not respond.
Recent Indian frigates were powered by Russian turbines. But GE’s LM 2500 gas turbines were chosen for three Project 17 frigates (of which INS Shivalik is the first) because of their better reliability. More than one thousand LM 2500 turbines power more than 400 warships in 30 navies across the world. In addition, the LM 2500 is used for power generation in luxury cruise liners like the QE II.
US defence industry sources indicate that GE is upset by the State Department’s directives, which clearly damage GE’s commercial interests. The ban, suggest sources, was imposed by an “over-enthusiastic State Department bureaucrat”, keen to display that the Obama administration was on the ball from the beginning. But in India, the ban is already generating talk of an unwise choice in going for a US engine.
This should raise a major red flag as its a good indication of the treatment yet to come from the new US government and must be taken as a serious warning sign. Obama snubbed India right after he took office and now he has announced he will have a dialogue with "moderate" Taliban. This is a great victory for Pakistan and has some serious implications for India. We are actually going back to the good old days of cold war. It better to read the writings on the wall early on and cancel every military deal with the US now. We can still win wars with Russian/European weapory. US is too unreliable even as friend let alone and "ally".
Now if only it was Pakistan and not India, US would have immidiately cleared the sale along with a few billions dollar additional aid package. Pakistan exports terror around the world and runs a nuke walmart and they get all the carrots while we try to behave well and try to get on Uncle Sam's good books and what do we get in return? Almost nothing that US does is ever in our interest. So my question is why even bother having any strategic ties with the US? Do we even need them? Will our next government summon enough courage to shut out the US completely?
and we commit to memory:'US is a unreliable ally'Period!The only ones who buy us weapons are Israel(which gets it for free) or NATO countries which get military aid i.e Greatly subsidized hardware or countries like Japan which the US is contractually obliged to defend.
We are paying cold cash for equipment we can easily get from EU/Russia/Israel and have to put up with washington pressure group theatrics,a very intrusive end user license agreement and next to ziltch tech transfer.wake up and don't buy american!SPECIALLY since they are blocking H1b visas etc.
Please don't blame the US as a monolith.
The decision obviously destroys goodwill abroad currently bestowed on US companies by current customers. It obviously serves some political purpose.
There seems little rational reason for Obama Administration to take this action unless it is to destabilize the US economy and provide a reason for advancing the cause of increased socialism inside the US.
how about signing over another treaty handing over nuclear sovereignity to our 'natural ally' USA, democracy and all. i cannot believe after sixty years the indians still trust the US beauracracy for even screwdrivers. If there were to be war with their non-nato ally pokistan or sino-india war they will stop deliveries of screwdrivers as well so that china can keep buying their bonds. how do our super smart politicians and beureaucrats not realize that?
Its our leaders who is not able to use their muscle to show it to the world that we are strong. The old British slavery is still lingering in our minds I guess.
And moreover, this does not seem to have been aimed at India, but nevertheless there are few other such incidents, we should take care of our interests.
The project team also could have added a risk factor, and have alternatives ready for such circumstances, to avoid the delay.
with the financial mess in USA and GE going down the hill it will be negative effect on both the GE and USA. And I am not surprce that GE stock price will go below $5.00 as well as it will take BA & LMT will down too if India will decide to go France for Mirage fighter.
Just when our relations with the US start sailing they display their arrogance again.
We should now throw them out of the MRCA competition and ban military purchases from the US unless they change their laws.
There is no reason why we should subject ourselves to such humiliation time and again when there are alternatives available.
Posted by: Tim
March 06 , 2009, 19:33 IST
I'm an American and I don't understand it. Wacky decision. I hope State reverses the dreadful decision asap.
Posted by: Yogesh
March 06 , 2009, 11:46 IST
I am strongly with you as a true Indian. Now it is upto us (voters of India) to choose our leaders who can take this kind of decisions fearlessly.
Dear sir,
Self-reliance can always be the only panacea for all hassles that we face in our preparations for our independent defence systems in times critical that the nation may ever face.In their scheme of things,USA will never allow any country that may grow in stature and eventually may clash with their interests in business, trade,geopolitics and their hegemony over international policies.In these matters,USA will not entertain bossomfriendship with any country as their national interest is the touch stone for their policy decisions in respect of their domestic and external policies.Hence ,we must Always prefer self reliance, no mattereven if it is costly and time consuming as after all it is the price we have to pay for our non-aligned independent policies and command respect from the comity of nations.
This action by the US is the death knell for all future defence/security cooperation.All american companies can pack up&go home.Nothwithstanding business losses of upto $200billion from civil,nuclear,defence contracts no Indian govt. will even look at any proposals from USA.This is HARAKIRI&will affect relations for decades.All the good work done by the Bush administration has been nullified.The Europeans/Russians/Israelis will be laughing all the way to the bank with multibillion dollar contracts from GOI.In an era of recession the ayotollahs of the new US adminstration are going to make OBAMA the laughing stock of the world.This will provide the stimulus for economies other than the US.So be it maybe they are patrons of the school of hard knocks!!
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