Business Standard

No F-16 deal during Modi’s visit to US

- AJAI SHUKLA REUTERS

There will be no announceme­nt of the sale of F-16 fighters to the Indian Air Force (IAF), or even of Indian interest in the F-16, during Prime Minister Narendra Modi’s official visit to Washington DC on Sunday and Monday.

Contrary to widespread media speculatio­n about an impending announceme­nt of a purchase by India of F-16 Block 70 fighters, and the transfer to India of the integratio­n line in Fort Worth, Texas, New Delhi has told Washington its decision would follow a careful selection procedure, say reliable government sources.

New Delhi has even turned down Washington’s proposal to mention the possible “Make in India” of F-16 fighters in the joint statement that will follow Modi’s meeting on Monday with President Donald Trump in the US capital.

“We are not expecting any announceme­nts (related to the sale of F-16s) in the next six months,” says an official who is aware of US-India negotiatio­ns.

Officials in both capitals understand that New Delhi is reluctant to commit itself to either side of a competitiv­e procuremen­t for single-engine fighters, which is still at a preliminar­y stage. Last October, the IAF sent out a Request for Informatio­n (RFI) to global aerospace manufactur­ers, but has not yet followed that up with a formal tender.

Senior officials in New Delhi indicate that besides the F-16 Block 70 offered by Lockheed Martin, Saab of Sweden has offered India its new Gripen E fighter, The United States is expected to authorise India’s purchase of a naval variant of the Predator drone, two sources familiar with the situation said, ahead of a visit next week by Prime Minister Narendra Modi to try to revitalise ties in his first meeting with President Donald Trump.

Securing agreement on the purchase of 22 unarmed drones, worth more than $2 billion, is seen as a key test of defence ties that flourished under former President Barack Obama but have drifted under Trump, who has courted Asian rival China as he seeks Beijing’s help to contain North Korea’s nuclear programme. which made its debut flight on June 15.

Fuelling speculatio­n over Saab’s continued relevance in the fighter procuremen­t, Modi phoned up his Swedish counterpar­t, Stefan Lofven, on Wednesday morning. Following what he lauded as a “good discussion”, Modi tweeted: “I deeply appreciate Sweden’s support for Make in India.” Lockheed Martin has waged an aggressive, American style campaign to push the F-16 — employing media briefings, sponsoring think tank papers and, at the ongoing Paris Air Show, announcing a joint venture with Tata Advanced Systems Ltd (TASL) to build the F-16 in India on an integratio­n line transferre­d from Forth Worth, Texas.

At the Paris Air Show on June 20, Lockheed Martin’s Vice-President, Orlando Carvalho, told DefenseNew­s that

The deal would still require approval by Congress. California-based General Atomics, the maker of the Guardian drone sought by India, declined to comment.

Modi’s two-day visit to Washington begins on Sunday. Trump met Chinese President Xi Jinping in April and has also had face time with the leaders of nations including Japan, Britain and Vietnam since taking office in January, prompting anxiety in New Delhi that India is no longer a priority in Washington.

The deal would be the first such purchase by a country that is not a member of the NATO alliance. the Trump administra­tion, notwithsta­nding its commitment to keeping jobs in America, was not opposed to transferri­ng F-16 production to India. Carvalho stated: “We’ve briefed various members of the administra­tion on the programme, on what that programme would mean for the United States and what it means for India, and throughout all of the briefings and discussion­s that we’ve done, we haven’t seen any resistance to the programme by the administra­tion.”

A key reason for this is that Lockheed Martin does not envisage transferri­ng more than a few hundred jobs to India, of workers involved in final assembly of the F16 at Fort Worth. Meanwhile, some 6,000 American jobs connected with producing assemblies and sub-assemblies for the F-16 would get a lease of life. Without an Indian order, these jobs would be lost, since there are no other buyers for the F-16.

While Lockheed Martin is pitching to India the opportunit­y to build F-16s for all future purchases worldwide, DefenseNew­s quotes Heidi Grant, deputy under-secretary of the US Air Force, as stating that interest from potential F-16 buyers was directed mainly towards the used F-16s of countries that were upgrading their fleet to the F-35 Lightning II.

If no new buyer emerges for the F-16, a line transferre­d from Texas to India would have to shut down after building India’s requiremen­t.

While Lockheed Martin has planned to transfer its existing line to India, Saab has offered to set up a brand new line, while its existing line in Linkoping, Sweden, continues to build the Gripen E for the Swedish and Brazilian air forces.

Saab has sweetened its offer by undertakin­g to help India in developing and manufactur­ing the Tejas Mark 1A — an improved version of the current indigenous fighter — and also helping in the developmen­t of India’s planned next-generation Advanced Medium Combat Aircraft.

India’s proposed procuremen­t of single-engine fighters stems from the failure of a decade-long competitiv­e acquisitio­n process for 126 medium, multi-role combat aircraft (MMRCA). That resulted only in an $8.85-billion agreement with French company, Dassault, for 36 Rafale fighters, leaving a shortfall of at least 90 fighters, and up to 200 if one took into account the IAF’s fast-depleting fleet of vintage Russian MiG-21 and MiG-27 fighters.

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