Business Standard
Friday, Jun 01, 2012
drived banner
drived banner
  Advanced Search
RSS
Content Guide
Follow us on  
||Companies & Industry||||||| 
 Section Home | News Now | Today's Paper | Q&A | People in the News | Industry News | Features | The Compass | Research & Analysis | Opinion | Corporate Results
Home > Companies & Industry Live Markets | Commodities
 

US allows GE to work on Indian warship
Ajai Shukla / New Delhi Mar 24, 2009, 00:21 IST

India’s new stealth warship, the INS Shivalik, is back on track. On March 12, 2009, the US government gave General Electric (GE) the green signal for resuming work on the two LM 2500 gas turbines that power the Shivalik. On March 6, 2009, Business Standard had reported that the stealth frigate was being delayed by “stop all work” instructions to GE from the US State Department.

Vice-Admiral HS Malhi, the chairman and managing director of Mazagon Dock Ltd (MDL), which is building the INS Shivalik, has confirmed to Business Standard: “The issue has been resolved. GE has communicated to us that they have been given permission to go ahead. Earlier, GE had indicted that the permission could take 3-4 months in coming; but now (the US State Department) has cleared it.

 
The US State Department’s complex defence export procedures appear to be behind this delay. US industry sources explain that the LM 2500 gas turbines are dual-use power plants — they have commercial as well as military uses. For that reason, they are not listed on the US Munitions List and do not require an export licence from the State Department’s Directorate of Defence Trade Controls (DDTC). However, for fitting these dual-use turbines on a warship, that is, for providing a “military service”, a Technical Assistance Agreement (TAA) is needed from State Department. This was only received on March 12, after which GE resumed work on the Shivalik.

Nikhil Khanna of the US-India Business Council (USIBC) confirms: “GE needed to apply for a TAA from the Political-Military Bureau at the State Dept, which they did…. Simple procedures needed to be completed according to US technology release policies and we’re confident and proud that GE’s LM2500 engines will power India’s cutting-edge stealth warships.”

GE has confirmed to defence industry publication, Jane’s: “GE continues to provide the Indian Navy with LM2500 gas turbines for its ship programs… with no export licence required. This week GE obtained a licence from the US Department of State, to authorise the delivery of all shipboard services being requested.”

Partly as a result of this delay, MDL is racing to try and complete work on the Shivalik before the monsoons make sea trials difficult. Vice-Admiral Malhi says: “What time was lost cannot be regained now. We wanted the gas turbines in mid-January; we are now looking at end-March. So, we have lost about two months. I hope GE is able to crash it (work on an accelerated basis) and reduce the time that has been lost.”

The US industry is bitter about “undue attention” on the Shivalik delay. Says an industry source: “This is when we should be celebrating recent successes, such as the Lockheed C-130J sale, Boeing VVIP jets and, recently, the largest-ever deal between the US and India, that of the $2.2 billion Boeing P-8i (maritime reconnaissance aircraft) sale to the Indian Navy, (which will be) the first international customer for the P-8i, a huge step forward in the growing strategic relationship between our countries.”

New Ipad Application :Business Standard's all new IPad App
Click here to download for free
Arrow Other Stories     
- Markets post worst May performace since 2006
- US jobs data points to recovery losing momentum
- FII-TO-FII TRADES: PNB traded at 5% premium
- Sugar output up at 25.5 million tonne this year surpasses govt estimate
- CoalMin identifies 54 blocks for allocation through auction
  Read Business news in 
- "Discover The Power of One"
- Help a Child Achieve her. Click to know more
- Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol.
- Watch The Film Here. Click here to know more..
- 1 billion in saving for Unilever without any tangles.
- A Brand New Server at a Price That Fits Your Budget. Click here
- One Partnership Endless Possibilities. Click here to know more
- Which is the best plan for your daughter
- Check out the TRUE COLOURS of your Stocks, Now for FREE!
- One of the leading business schools in the world.Know More
Sorry, comments to this story are closed
Latest Messages
Posted by: chinmay
Yeah India & USA has gone beyond the level gesture. i think Obama gov. needed time to review there policies as they done it quickly which means obama is clear state of mind to do buisness with india. we should take this as an opprtunity to build a strong relationships with western as well as European countries. In this way we can taclkle Russian market nicely by generating competetion between the countries. offcourse Russians are very friendly us but we are unable to cope with there late delivering orders & unexpected raising of price as in the case of INS vkramaditya deal. India is a very potential market in the Defence sector in today & coming years. As the competition is always good. on the deal of 126 fighter aicraft (MMRCA) in its split order india should choose one of the american brand as the we will get experience on there competitiveness & cutting edge technology.
Posted by: NJS
India & USA should cross beyond this level . India Need go for immediate Purchase of 50 nos Fighter craft , to stop depletion in IAF force Sqn's level.
Table for Two
  Now available at Special price
  Rs.280/- Only

  Buy Now
BS POLL
UPA 2 has completed three years. How do you rate its performance?  Read the story
  Good
  Average
  Bad
Submit
Most Popular
Read
E-Mailed
Commented
   
- Slowdown gets worse, GDP growth sinks to 9-year low
- M&M has a Rs 7,500-cr spending plan over three years
- India Inc ready to shift to other side of the dot on www
- India to be $2-trn economy by FY13-end?
- IIT alumni to move court on changes in JEE
 
 More  
Tax Shastra
  Now available at Special price
  Rs. 360/- Only

  Buy Now
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring BS Books
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World | General News
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Contact Us