The Hindu Business Line : As Boeing awaits fighters deal, Indian cos eye $3-b offsets biz

Even before the bugle has been sounded on the IAF's new combat aircraft purchase process, Indian corporates are apparently lining up for its offsets business, worth around $3 billion (Rs 13,500 crore).

Apart from HAL, Tatas and L&T, the offsets business has also stirred the interest of TCS, Wipro, Infosys among others, according to top officials of Boeing IDS.

Boeing IDS (International Defence Systems), the military aircraft making arm of the US major, is one of the contenders for the Ministry of Defence's next big purchase plan for 126-180 fighters, said to cost $7-10 billion. (nearly Rs 45,000 crore). As per the MoD's offset norms, public and private sectors get 30 per cent of related business in some form - ranging from co-production, R&D to components supplies.

Boeing IDS is among the handful of contenders keenly awaiting the release of the Defence Ministry's request for proposals (RFPs) for 126 fighter aircraft. The RFPs to augment the IAF fleet - the second bid after the Sukhois a few years ago, is reportedly round the corner.

Mr Chris Chadwick, Vice-President, Global Strike Solutions, Boeing IDS, said in Bangalore that India would be the first country to be offered F-18 `Super Hornets'. "This is the largest international competition we have been involved in," he said. The MoD was expected to take a decision by around 2009, he said.

Talks with Ministry

Each F-18 multi-role combat aircraft (MRCA) costs the US air force around $53 million. Mr Chadwick, who heads the F/A-18 Super Hornet programme, said Boeing IDS officials have been in talks with the MoD and IAF about their requirements and working with the US government on critical technologies on the aircraft.

The benefits, still to be finalised, could be co-production with HAL, technology transfer, collaboration, software development or R&D tie-ups with Indian companies. "We don't want this to be just sales; then, we would have lost a good opportunity to do business in India," Mr Chadwick said. Boeing's civil aircraft arm is already involved with TCS, Wipro, Infosys, Indian Institute of Science and others.

The F-18 is in race with the Eurofighter Typhoon which is a joint product of the UK, Germany, Italy and Spain. IAF had earlier sought information from four other makers - Dassault Aviation for Rafael; Lockheed Martin for F-16s, the Russian MiG Corporation for MiG-29 and the Sweden's SAAB for Gripen.