Hawk jet deal with India thrown into doubt?
Friday, 12 March 2004, 20:30 IST
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LONDON: The one-billion-pound deal between India and BAE Systems for the supply of Hawk jet aircraft has reportedly been thrown into doubt by an accounting oversight by the Indian partner, Hindustan Aeronautics. The contract to supply 66 training aircraft was expected to be formally sealed this week. But reports in the British press said that when Hindustan Aeronautics Ltd. (HAL) submitted its budget for the deal to the Indian government, it forgot to include some costs for tooling and training at its factory in Bangalore. The oversight could increase the cost by several million pounds per aircraft. The Times reported that the omission in detailing the cost of tooling is thought to have occurred because of delays in finalising the details and the retirement of key people involved in the negotiations. The aircraft were to be manufactured at the BAE's Hawk factory at Brough, near Hull. The Hawk tender has been called the longest in history. The Indian government first said it wanted to buy the jets 18 years ago and came close to signing a deal on several occasions. The paper quoted BAE as saying that talks were continuing with the Indian government over the matter but declined to comment further. The paper said BAE is "thought to have told the government that it cannot move on the price agreed last September".
Source: IANS
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