Russia keen on guarantee pact for defence projects - NATIONAL - The Hindu
As India and Russia gear up to sign a major deal for manufacture of Russian light utility helicopters in India with significant participation by the private sector, Russia is keen to conclude a mutual investment guarantee pact with India for joint defence projects in future, a senior Russian government official said.
“In the first stage it can be a government-to-government agreement. In the second stage it can be at the business-to-business and central bank level. Payment can be in local currencies which will minimise risks,” Andrey I Boginskiy, Deputy Minister of Industry and Trade in the Russian Government told a group of visiting Indian journalists.
Russia is keen to expand the joint development projects and is ready to transfer technologies under the ‘Make in India’ initiative. “We understand the ‘Make in India’ [initiative] and due to our long standing relations we know how to deal with India,” said Mr. Boginskiy.
Russia has traditionally dealt with Indian government companies and now the government is encouraging the private sector to build capabilities in the complex defence manufacturing business.
Copter deal
India and Russia are expected to conclude the Inter-Governmental agreement for the production of 200 Kamov-226K light utility helicopters in India during Prime Minister Narendra Modi’s visit to Russia later this month.
“For a long time we have discussed the production of Kamov 226 helicopters in India both at the working level between companies and also at the government level. We indeed hope that during the visit [of Mr. Modi] we sign the deal,” Mr. Boginskiy observed.
A second-level agreement will be signed between Russian Helicopters and the Indian partner. An Indian private player is likely to be chosen to work with Hindustan Aeronautics Limited (HAL) under the Make in India initiative. Anil Ambani’s Reliance Defence has been in talks with Russian Helicopters in this regard.
On their preference for HAL or a private partner, Mr. Boginskiy said they were ready to work with any partner chosen by the Indian side.
“The main thing is that it should be financially and technically capable of taking on such a large project.”
“Russian Helicopters and its subsidiaries and component manufacturers are ready to supply kits for its assembly in India as well as to localise production,” Mr. Boginskiy added.
Indian Armed Forces are facing a severe shortage of utility helicopters to replace the ageing Cheetah and Chetak helicopters but several procurement programmes have been repeatedly delayed.
As India and Russia gear up to sign a major deal for manufacture of Russian light utility helicopters in India with significant participation by the private sector, Russia is keen to conclude a mutual investment guarantee pact with India for joint defence projects in future, a senior Russian government official said.
“In the first stage it can be a government-to-government agreement. In the second stage it can be at the business-to-business and central bank level. Payment can be in local currencies which will minimise risks,” Andrey I Boginskiy, Deputy Minister of Industry and Trade in the Russian Government told a group of visiting Indian journalists.
Russia is keen to expand the joint development projects and is ready to transfer technologies under the ‘Make in India’ initiative. “We understand the ‘Make in India’ [initiative] and due to our long standing relations we know how to deal with India,” said Mr. Boginskiy.
Russia has traditionally dealt with Indian government companies and now the government is encouraging the private sector to build capabilities in the complex defence manufacturing business.
Copter deal
India and Russia are expected to conclude the Inter-Governmental agreement for the production of 200 Kamov-226K light utility helicopters in India during Prime Minister Narendra Modi’s visit to Russia later this month.
“For a long time we have discussed the production of Kamov 226 helicopters in India both at the working level between companies and also at the government level. We indeed hope that during the visit [of Mr. Modi] we sign the deal,” Mr. Boginskiy observed.
A second-level agreement will be signed between Russian Helicopters and the Indian partner. An Indian private player is likely to be chosen to work with Hindustan Aeronautics Limited (HAL) under the Make in India initiative. Anil Ambani’s Reliance Defence has been in talks with Russian Helicopters in this regard.
On their preference for HAL or a private partner, Mr. Boginskiy said they were ready to work with any partner chosen by the Indian side.
“The main thing is that it should be financially and technically capable of taking on such a large project.”
“Russian Helicopters and its subsidiaries and component manufacturers are ready to supply kits for its assembly in India as well as to localise production,” Mr. Boginskiy added.
Indian Armed Forces are facing a severe shortage of utility helicopters to replace the ageing Cheetah and Chetak helicopters but several procurement programmes have been repeatedly delayed.
