Sanctions On Bel May Queer Pitch For Us Defence Firms

Several US defence technology firms operating in India may find themselves in the firing line as New Delhi gears up to retaliate against Washington s decision to impose sanctions against Bangalore-based defence public sector undertaking Bharat Electronics Ltd (BEL).

The external affairs ministry is currently preparing a response to the US decision, announced on May 23. If the government found that the sanctions will affect BEL s commercial activities and the country s defence electronics programmes, then US companies which are hardselling defence equipment may face New Delhi s ire, official sources said.

The sanctions require that companies there would have to seek a US commerce department clearance for exporting equipment to BEL. The US government has listed components which it feels could be used in weapons of mass destruction and banned their exports to companies like BEL which are on its suspect list.

 

US companies like the LHTEC, a joint venture between Allied Signals and Allison, Lockheed Martin, Texas Instruments and Silicon Graphics are active in the defence sector in India.

Recently, the US liberalised the sale of testing and evaluation equipment for defence hardware which in turn has attracted several US companies to India hoping for millions of dollars worth of business.

If the sanctions issue snowballs into an India-US row then the prospects of US defence technology companies trying to sell their wares are certain to be hit.

For example, LHTEC is pitching strongly for the Advanced Light Helicopter s estimated $1 billion engine deal, although media reports have accused the LHTECs T-800 engine of being underpowered. Texas Instruments is in the race to supply an advanced maritime surveillance radar to the Navy while Lockheed Martin is helping out in the Light Combat Aircraft programme. Silicon Graphics is into defence simulation.

A BEL spokesman said there was little reason for the US action as his company provided end-user certification for US-imported components in cases where such documentation was required. Adding that a detailed report on the impact of the US action had been sent to the defence ministry, under which BEL functioned, the spokesman said it was up to the government to respond to the US sanctions.

The spokesman said BEL had a representative office in the US which had sourced components for nearly 15 years. He said that there had been no problem in the past and evinced wonder as to why BEL was suddenly being branded as a weapons proliferator.

An Indian defence source said technology was available from more than one country and even if the US blacklists BEL, ongoing Indian defence programmes will not be hurt. On the contrary, as has happened in the past, whenever technology has been denied to us we have responded by developing our own, he said, citing the example of the Param Parallel computer and the cryogenic rocket engine.