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NEW DELHI: India’s prime minister is expected to promote deals for Russian nuclear reactors and military helicopters worth billions of dollars on a trip to Moscow next week, attracted by promises to transfer technology that Western nations have been slow to make.
Russia and India will manufacture 200 Kamov-226T helicopters in a joint venture, a Russian and an Indian government official said, in the first big step for Indian Prime Minister Narendra Modi’s campaign to build a domestic industrial base and reduce the military’s dependence on expensive imports.
Mr Modi, who heads for Moscow on Dec 23, will also offer Russia a site in the southern state of Andhra Pradesh to build six nuclear reactors of 1,200 megawatts each, the same sources added.
That is in addition to the six Russia is constructing in neighbouring Tamil Nadu state, said the officials.
Take a look: Putin visits India to boost energy, trade ties
New Delhi has turned to Russia as US firm General Electric and Westinghouse, a US-based unit of Japan’s Toshiba , are still weighing an entry into India’s nuclear energy sector because of a law that makes reactor suppliers liable in case of an accident.
Narendra Modi to visit Moscow next week
Mr Modi’s “Make-in-India” push for a military that has been the world’s biggest importer for the last four years has also made little headway, with negotiations stalled over issues including technology transfer and the local assembly of equipment.
For Russia, India offers an alternative, fast-growing outlet for its exports as sanctions imposed by the West squeeze the economy.
“While others are making promises, Russia is moving forward with the Make-in-India programme,” the Russian government source said.
Market share
Moscow, which has maintained close ties with India since the Cold War, has in recent years slipped behind the United States and Israel in securing orders in the Indian defence market, estimated to be worth $130 billion over the next seven years.
Now Russian President Vladimir Putin is banking on India’s drive to manufacture at home to regain market share.
“The objective is that whatever we do with Russia, that will have a ‘Make-in-India’ component,” said Amitabh Kant, the top Indian bureaucrat leading the push to turn India into a global manufacturing base.
Under an inter-government agreement to be signed during Mr Modi’s trip, Moscow would set up a production line for the light helicopters that would supply the Indian military but also eventually Russia, the Russian official said.
India’s state-run Hindustan Aeronautics and Anil Ambani’s Reliance Defence are in the running as local partners for the deal for the 200 twin-engined helicopters, estimated at $1bn, to replace India’s ageing fleet of Cheetah and Chetak helicopters.
“The choice of the Indian partner has been left to the Indian government. We will work with anyone the government nominates,” the official said.
India is also turning to Russia to secure overseas energy assets to help fuel its economy.
Indian Oil Corp and Oil India, both state-owned, are in talks with Russia’s Rosneft to buy up to 29 per cent stake in a Siberian oil project, two sources said on Friday.
The helicopter deal will be the first major contract under Mr Modi’s drive to build weapons at home that has excited local defence companies but failed to deliver any significant tenders.
Published in Dawn, December 19th, 2015
