The Hindu Business Line : Lockheed Martin looks beyond pushing F-16s

Aircraft deal
The IAF's 126-fighter deal alone is put around $5 billion (over Rs 22,500 crore).
Its offsets in the form of exports from Indian companies could be at least 30 per cent of it or Rs 6,700 crore.
In touch with 30 Indian cos for possible role in its programmes

Bangalore , July 25

Lockheed Martin, whose F-16 is in the race for what is probably the decade's biggest fighters order put out by the Indian Air Force, says it is also looking beyond the deal and its mandatory offsets; it has started building bridges with Indian industry for "a broad range of opportunities" for the long haul.

These could be co-development, global manufacturing support or joint ventures, according to Mr Orville Prins, US-based Vice-President, Business Development-India, Lockheed Martin Aeronautics Company.

Apart from Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd, Lockheed Martin has been in touch with nearly 30 companies including the Tata group, Infosys, Wipro and Maini for a possible role in its current and future programmes, in India or outside, Mr Prins, who has been on a three-day visit to the city, told Business Line.

The IAF's 126-fighter (MRCA or multi-role combat aircraft) deal alone is put around $5 billion (over Rs 22,500 crore). Its offsets in the form of exports from Indian companies could be at least 30 per cent of it or Rs 6,700 crore.

However, "We are also looking for opportunities that have nothing to do with the MRCA. My goal is to have one or more contracts with at least one Indian company this year," Mr Prins said, adding that some companies here produce world-class castings and forgings.

With HAL, it is discussing several projects to produce parts; and possibly an engineering development project. Mr Prins said the investments and activities in India would hinge on its discussions with the industry and the MRCA deal.

The F-16 assembly lines in Belgium, the Netherlands, Turkey and South Korea that could be a model here have produced 900 aircraft; the company has completed offsets worth $40 billion with 37 nations.

Even as it awaits the Ministry of Defence release of request for proposal detailing its requirements, Lockheed Martin has planned a conference in Bangalore on August 21-22 of its 25 global vendors to talk about the LM supply chain to about 50 Indian companies. These are picked from the Ministry's list of `champions of industry' to be potential contractors in the MRCA offset.

Fighter fray

Also in the fighter fray are Russian MiG-35; Boeing's F/A 18; the European consortium's Eurocopter; the French Rafael and the Swedish JAS 30 Gripen.

Whoever wins the fighters order, licensed production with HAL is given, by which the defence PSU is to deliver 108 of the 126 fighters in varying levels of involvement. The winner would supply the first 18 over four years.

While the fighter deal hogs the limelight, technical proposals submitted by the $37-billion Lockheed Martin are under evaluation for the Navy's two aircraft purchase bids.