Foreign companies wishing to partner Indian firms and set up facilities in India have to get clearance from their respective governments, said Defence Minister Manohar Parrikar in the backdrop of the dramatic policy turnaround by the Donald Trump administration on U.S. companies shifting production abroad. He was speaking at the Aero India 2017 exhibition, which began here on Tuesday.
The Minister’s statement is an important clarification from the government which intends to throw open several big ticket deals under the ‘Make in India’ drive. “In the Strategic Partnership model, one of the requirements is for the Original Equipment Manufacturer (OEM) to get its Government’s approval,” Mr. Parrikar said.
‘Not my concern’
Observing that it was not for India to talk to other governments, he said: “It is not my concern.”
The policy unveiled by President Trump to bring back manufacturing jobs to America has raised concerns on the fate of the soon-to-be-launched multi-billion fighter aircraft deals in which U.S. defence majors Boeing and Lockheed Martin are vigorously pitching their products.
While Lockheed has offered its F-16 for the single engine jet deal, Boeing has offered its F-18 Super Hornet in response to the Navy’s Request For Information (RFI) for 57 carrier-based aircraft. Both have offered to set up assembly facilities in India with extensive technology transfer.
Boeing said it was not aware of any policy changes in the U.S. with respect to the offer but declined to elaborate.
Kaveri engine
Swedish defence major SAAB has offered its Gripen fighter but it flies with a U.S.-built engine in addition to some other components. While company officials say they do not foresee any issues, the concerns are yet to be fully addressed.
The indigenous Kaveri jet engine project which was shut down after repeated time and cost overruns will get a new lease of life. “Kaveri is being revived. DRDO is in discussions with Safran as part of offsets under Rafale jet deal,” Mr. Parrikar said.
