Sarkozy eyes big contracts

Having installed a new, tightly-knit, hard-right Cabinet in Paris, French President Nicolas Sarkozy has now trained his eyes on the next big event on his calendar — his visit to India that begins on Saturday.

For Mr. Sarkozy, the challenge in India will be to equal the charm offensive of the Obamas and return home with substantial contracts in the bag. Neither of these is likely to prove an easy proposition.

External Affairs Ministry spokesperson Vishnu Prakash and his colleague T.S. Seetharam said in New Delhi that agreements in the defence sphere were unlikely to materialise. “Such agreements should not be put under the pressure of such high-level visits,” they said.

The $2-billion plan for upgrade of the Indian Air Force's 50-plus Mirage 2000 is still being negotiated. The French were upset at India cancelling the tender for 197 helicopters, in which the Europeans were considered the front runners. The helicopters are now being tested again. France is also pushing for the Rafel fighter aircraft that are in the running for a $10-billion tender. Furthermore, talks are on for cooperation in a multibillon dollar project for medium-range missiles.

Both sides are attempting to tie up two framework agreements in the civil nuclear sphere, and these could be inked during Mr. Sarkozy's visit. The initial agreement is expected to be for purchase of two reactors for Jaitapur in Maharashtra. The number may increase to six. One framework agreement will be between the two governments, and the second between civil nuclear power companies of both countries.

Space sector

The two sides are also likely to advance their partnership in the space sector. Currently, the French company, Arianespace, provides launch facilities for Indian satellites (INSAT), while India's Polar Satellite Launch Vehicle (PSLV) has been used to launch satellites for European customers. The Indian Space Research Organisation (ISRO) and its French counterpart, CNES (Centre National d'Etudes Spatiales) have worked on a scientific satellite programme, MeghaTropiques, which may be launched in early 2011. Another satellite SARAL, designed and built by the ISRO, is expected to be launched in the first quarter of next year, with the active co-operation of the CNES.

Mr. Sarkozy will be accompanied by a large business delegation that includes Anne Lauvergeon, CEO of the nuclear giant Areva and Louis René Fernand Gallois, CEO of European Aeronautic Defence and Space Company, which is trying to win the contract for multi-purpose fighter jets. Mr. Sarkozy is expected to push hard for Rafale, whose manufacturer, Serge Dassault, is a close personal friend of the President. However, the aircraft is considered expensive, and not a piece has been sold outside France.

At the official-level talks with Prime Minister Manmohan Singh, Mr. Sarkozy is expected to discuss the ongoing cooperation in counter-terrorism and the regional situation, including Afghanistan and Pakistan.