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Display by metal birds draws to a close

Staff Reporter

Decisive shift towards United States in India's aviation procurements


  • Lockheed Martin and Boeing had high visibility
  • Indian, foreign firms discuss business deals



    INDIGENOUS: Advance Light Helicopter Dhruv airborne at the Yelahanka Air Force Station in Bangalore on Sunday. — Photo: Sampath Kumar G.P.

    BANGALORE: Hardcore aviation buffs sat glued to the tarmac as the flying machines lit up the skies one last time as "Aero-India 2007," the sixth edition of the biennial aerospace exposition drew to a close at the Yelahanka Air Base here on Sunday.

    What has emerged clearly from the five-day event is the decisive shift towards the U.S. in India's future aviation procurements.

    Predictably, competitors for the multi-billion dollar Medium Multi-Role Combat Aircraft contract from the Indian Air Force made most of the noise at the show. From the makers of Gripen with their own exclusive corner structure to the Russians with their MiG-35, the fighter aircraft makers were in full attendance. The Americans had come fully prepared with their F-16 flying falcon and the F/A-18 super hornet to make an impact on the IAF.

    Defence majors across the world had pitched tent for five full days, well aware of the huge potential the booming Indian aviation industry holds. Money, marketing muscle and media-savvy promotions were all in top gear. American firms Lockheed Martin and Boeing had high visibility. The message was clear: after the Indo-US nuclear deal, the US is hell-bent on grabbing a big piece of the pie, in this case the Great Indian Defence Billing. Hindustan Aeronautics Limited (HAL), the State-owned aviation major, had double trouble at the show. The company top brass had to tackle two mishaps, the crash of an Advanced Light Helicopter (ALH) Dhruv of the Sarang aerobatic team that killed the co-pilot and severely injured the pilot, and the tyre burst of the Intermediate Jet Trainer (IJT). Both aircraft were HAL's showpieces of indigenous design and development, and the mishaps could not have been more ill-timed.

    Silver lining

    But the pall of gloom had a silver lining: The hi-profile flight of business tycoon Ratan Tata on the F-16 and F-18. The flights hogged massive publicity.

    Business deals between private firms took on an altogether different hue at the air show in the wake of the country's new offset policy drafted as part of the 2006 Defence Procurement Policy. Foreign firms are required to look out for partnerships worth up to 30 per cent of any contract with billings over Rs. 300 crore. Virtually, every participating defence major used the occasion to either firm up contracts with private Indian firms or exchange notes for future tie-ups. For instance, Boeing, Gripen, Northrop Grumman, Bell Helicopters, Eurocopter, EADS and GIFAS, a consortium of French aerospace companies, had interactions with a host of Indian firms including Bharat Electronics Limited, Bharat Earth Movers Limited, TCS, HAL and many smaller private aerospace firms. It was widely acknowledged as a win-win situation for both Indian and foreign partners.

    Huge outlay

    India has proposed to spend about $35 billion over the next 25 years, of which offset alone will come to about $10 billion. This is a huge outlay, a big advantage that both the foreign and Indian defence majors are not willing to miss.

    For the thousands who thronged the air show on Sunday, these potential mega deals were out of sight. What they were more interested in were the aerobatic skills of metal birds high up there.

    The jet fighters, both Indian and foreign, the luxury jets and the huge American military cargo aircraft did not disappoint them. Twisting and turning in the air, they enthralled the crowds.

    When the people returned to their homes, they felt the hard drive up to Yelahanka was justified. The foreign exhibitors were of course in a hurry to dismantle the exhibits, pack up and fly out the same evening. Lurking ominously was the bandh on Monday, and they did not want to get caught in the mess.

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