LONDON: Defence Minister George Fernandes has said that India has agreed to a price for the purchase of 66 Hawk trainer jets from British-based BAe Systems.
Fernandes told Britain’s Channel 4 television news on Tuesday “it is much closer in the sense that the price negotiating committee has completed its work, and the matter is now going before the (Indian) cabinet.”
The cabinet is due to discuss the deal – estimated to be worth about one billion pounds – sometime in August.
Negotiations over the order have been ongoing for more than 15 years, but recently stalled on the issue of price. British Prime Minister Tony Blair was reported to have attempted to help break the stalemate during his visit to India earlier this year.
While some of the jets are expected to be built in Bangalore, a deal would help secure jobs at BAe plants in the north England towns of Brough and Warton.
The Indian Air Force needs to make an order because older Russian MiGs that it is using as trainers are reaching the end of their lives, and have a high accident rate. In the absence of new trainers, it would have to use the next generation of MiGs and take them out of operational service.
There have been suggestions that India was considering opting for a Czech-built plane rather than the Hawk.
A spokesman for BAe Systems declined to comment on Fernandes’ remarks.
http://timesofindia.indiatimes.com/articleshow.asp?artid=17637230
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July 31, 2002 at 7:58 am