May 27, 2003	Tuesday	Rabi-ul-Awwal 24,1424

LONDON: Defence giant BAE systems is poised to clinch the pounds sterling one billion sale of 66 Hawk trainer jets to the Indian government, ending a 16-year wait to see the deal done.

After years of wrangling, company insiders, together with people close to the Indian government and UK diplomatic sources, appear confident that a contract will be signed within weeks.

The issue was raised at a meeting last week between British Foreign Secretary Jack Straw and Indian Foreign Minister Yashwant Sinha, who indicated that a conclusion is close.

BAE itself has had signals from the British High Commission in Delhi, along with UK government sources that the deal is not far off.

A company source said: “There have been conversations which indicate it going through the final committee and is waiting for cabinet approval. We have had very positive feedback.”

A source close to Indian Defence Minister George Fernandes said: “He told me recently that it is with the finance committee. It will be signed by them before it goes to the cabinet. He says the deal is almost certain to go through within weeks.”

The order would be a vital boost for BAE’s plant at Brough, Humberside, where Hawk is made. Exports of the jet, which was controversially sold to Indonesia, have dried up, and unions have joined with company officials in warning that without a significant order soon the plant is in peril.

The Ministry of Defence is in negotiations with BAE about using Hawks as part of a Private Finance Initiative-style contract where the company would guarantee flying hours to the RAF. There are concerns in the company that the MoD will insist Hawk competes against an Italian design for the contract.—Dawn/The Guardian News Service.