BUSINESS

Boeing looks for allies to tap defence sector

By Bibhu Ranjan Mishra in Bangalore
November 07, 2006 10:05 IST

Boeing Integrated Defence Systems, the defence and space division of Boeing, is in the process of building up its long-term partnership with Indian defence suppliers to tap emerging opportunities in the country's defence sector following lifting of sanctions by the US government in 2004.

The $31 billion group, which already placed proposals for supply of eight P8Is (long-range maritime reconnaissance and anti-submarine warfare aircraft) to the Indian Navy in April, is also preparing a comprehensive proposal for the proposed multi-role combat aircraft for the Indian Air Force. Further, the company is identifying Indian defence manufacturing companies for assembly and production in India.

The Navy is also planning to issue a request for proposals for 22 more military transport and surveillance aircraft in the second phase. "Many others are also competing for the proposals. But the P8Is, which were originally built for the US Navy, is so far considered the fastest reconnaissance plane and we hope that to be the natural choice. We have also proposed to Indianise it to suit specific Indian requirements," a senior Boeing IDS official said.

For the second RFPs for 126 multi-role combat aircraft (MRCA), which the Indian Defence Ministry is expected to issue by the end of this year, Boeing IDS has prepared a comprehensive proposal with its F/A-18E/F Super Hornet. This is a multi-role strike fighter, which with present US configuration costs about $6-9 billion for 126 aircraft.

The proposal envisages importing the first 18 aircraft from the US, while the remaining 108 will be manufactured in India through strategic partners. The Boeing IDS official said that the company was in talk with defence manufacturers like HAL and Taras, and if required, they may even go for multiple partners.

"The idea is not just to offset obligation as the Indian government is scouting for developing indigenous expertise on building an aircraft but also to get long-term business partners from top-notch Indian suppliers," he said.

Boeing IDS is also in the process of finalising proposals for the proposed acquisition of heavy-lift helicopters by the Indian forces. The Indian Army is planning to issue RFPs for these soon. Boeing has CH-47/MH-47 Chinook for troop, cargo movement and for relief and rescue operations.

The helicopter is in operation with the armed forces of nearly 20 countries now, said the official.
Bibhu Ranjan Mishra in Bangalore
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