The Hindu Business Line : Star-studded Aero India show opens today

Orders galore
IAF to buy 126 modern fighters MRCAs
MRCA deal estimated at $7-10 billion
Local industry to gain from deals bigger than Rs 300 crore

BIG DRAW: The Sarang ALH Dhruv team performing at the Yelahanka Air Station at the Aero India 2007 in Bangalore on Tuesday. The sixth Aero show is starting on Wednesday and will be inaugurated by the Defence Minister. There has been a 30 per cent rise in participation this year with 500 companies taking part. - Bhagya Prakash K

Advertisement

Bangalore Feb. 6 The sixth Aero India show opens at Yelahanka Air Force Base on Wednesday, with a galaxy of global civil and military aviation names coming in to show off their flying machines and other wares.

The five-day, two-yearly show to be inaugurated by the Defence Minister is seen as a platform to network and do business for several military and civil aviation deals. The biggest is the IAF's intent to buy 126 modern fighters - MRCAs - touted to be the decade's biggest order. The MRCA deal alone is estimated at $7-10 billion (around Rs 45,000 crore); there are 2-3 smaller defence orders in the air.

Mr K.P. Singh, Secretary, Department of Defence Production, told a pre-event briefing that the next six months should see some movement on the MRCA acquisition plan.

The MRCA aspirants have brought in their aircraft - Lockheed Martin (F160: Boeing IDS (F/A 18 Super Hornet); Sweden's SAAB its Gripen; Russian Aircraft Corporation unveiled its MiG-35 outside its country for the first time; and Dassault Aviation.

Lockheed Martin has staged a publicity coup by getting Mr Ratan Tata to fly as co-pilot on its F-16 on Day 1.

The air chiefs of 35 countries have come, besides 300 international exhibitors from 33 countries. 50 aircraft on show either flying or static.

The FICCI-Farnborough combine that is managing the event for the MoD has tried to give it a corporate, not-too-military touch; The result is a display enclave for business jets aimed at corporate customers; a two-day star-studded civil aviation conclaves; and a golf tournament.

WIN-WIN SCENE

Mr Singh said the international draw to Aero India was also the 26 per cent FDI now allowed in defence production and stretchable on merit as in two cases. Also shaping up is the transport plane venture with Russia.

The local industry stands to gain from every defence deal exceeding Rs 300 crore as the Defence Procurement Policy mandates a 30 per cent offset or exportable spin-off to the domestic industry. "In 10 years, the total import value could mean that $ 5-billion offset could fall in the lap of Indian industry," Mr Singh said. Electronics accounts for 50 per cent of the aircraft cost; the country's strong software sector will also benefit from the orders, he said.

The FICCI-Farnborough consortium that won the bid to handle this year's event puts the total spend at Aero India 2007 at Rs 35 crore, of which MoD would get $3 million (Rs 13.5 crore) as royalty, a top FICCI official said.

The Bangalore show has arrived, making it one of the largest air shows. Mr Singh said: "There's not a company in aviation that matters that is not here." The line-up includes the global top five - Lockheed Martin, Boeing, Northrop Grumman, Raytheon, BAE Systems, Rolls Royce; French consortium EADS; domestic PSUs HAL, BEL, BEML that have started focussing on exports, and defence research labs and global aero engine makers.

It may not be in the league of UK's Farnborough that gets over 1,400 companies; or France's Le Bourget. Mr Trevor Sidebottom, Managing Director, Farnborough International - a subsidiary of the UK aerospace association SBAC - said Aero India is outgrowing Dubai and Singapore air shows, considering that India was a major aviation market. Their brief was to increase the participation by 20 per cent over 2005 and "we were able to make it 50 per cent higher."

The 2007 show is said to be 30 per cent bigger by space and by participation; it has 503 exhibitors, 33 country representations and 40 official delegations.