India not averse to higher FDI in defence

Bangalore -- India Tuesday said it was not averse to allowing a higher FDI than the 26 percent currently permissible in the defence sector if this would mean induction of cutting edge technology.

"We could always have a case-to-case approach to allowing higher than the stipulated 26 percent equity from foreign companies provided high-tech items were involved," Defence Production Secretary K.P. Singh said at a press conference here on the eve of Aero-India 2007, the country's largest international air show that opens at the Yelahanka air force base on the outskirts of the city.

"We could always go to the cabinet for approval (of higher FDI)," he added.

Singh said that an inter-governmental commitment to kick-start India-Russia defence cooperation would be signed soon.

"Only minor issues remain to be sorted out such as the permission required to export to third countries," said Singh.

The air show that opens Wednesday will see the participation of over 400 companies, including global aviation majors from 28 nations.

About 100 civilian and military aircraft, including frontline F-16 and F-18 combat jets, will feature at the sixth edition of the five-day Aero India international aerospace and defence exhibition that concludes Feb 11.

Aero India, which Defence Minister A.K. Antony will inaugurate, will also feature two conferences. The first will see air force chiefs of 30 countries participate in an aerospace seminar being hosted by the Indian Air Force (IAF) as part of its platinum jubilee celebrations.

The other will be an international conference on aviation that will discuss issues like developing world-class infrastructure at airports, IT applications at airports, and aircraft repair and maintenance.

The focus, however, is likely to be on the two US fighters as their manufacturers Lockheed Martin and Boeing aggressively position the planes for an IAF order for 126 aircraft to ramp up its depleting force levels.

The highlight of the Indian participation will be the state-owned aircraft major Hindustan Aeronautics Ltd (HAL), which will showcase a full scale mock up of a light combat helicopter (LCH) it is designing, along with the previously displayed Tejas Light Combat Aircraft (LCA), the Dhruv Advanced Light Helicopter (ALH) and the Intermediate Jet trainer (IJT).

An added attraction is that Tata Group Chairperson Ratan Tata, 69, will fly Lockheed Martin's multi-role combat aircraft F-16 at the Aero India Friday.