MEA shoots down defence ministry's helicopter export (to Bolivia)

MEA shoots down defence ministry's helicopter export
Ajai Shukla / New Delhi May 23, 2009, 1:16 IST

The prospects for India’s most promising defence export — the Dhruv Advanced Light Helicopter (ALH) — have just been dealt an unexpected blow. India’s Ministry of External Affairs (MEA) has turned down a Bolivian request for a line of credit to buy seven Dhruvs from Bangalore-based manufacturer Hindustan Aeronautics Limited (HAL).

Senior officials in India’s Ministry of Defence (MoD) are livid. India’s defence exports languish at about Rs 300-400 crore per year, barely 1 per cent of the Rs 30,000 crore spent annually on importing weaponry. The export of seven Dhruvs, each worth Rs 44 crore, would have effectively doubled defence exports.

MoD sources said the MEA turned down Bolivia’s request for a line of credit on the grounds that it was for military equipment. The MEA has not responded to an emailed questionnaire from Business Standard on the subject.

Dhruv ALHs, in fact, have civilian as well as military uses. Of five Dhruvs delivered to Ecuador this year, one was kitted out as a VIP transport for the Ecuadorian president. India has also supplied Dhruvs to Nepal and to Mauritius on easy credit, even as gifts.

Says a senior MoD official, “Frankly speaking, I was surprised by the MEA’s decision. I can only surmise that this decision was taken by someone at the lower level, without realising the implications on India’s defence exports.”

Bolivia barely registers on the MEA’s radar. That country does not have an embassy in New Delhi; an Honorary Consul represents India in La Paz, Bolivia’s capital.

But for the MoD, the sale of Dhruvs to Bolivia would be a vital step in cracking America’s domination of the South American helicopter market, which HAL was targeting aggressively. As more Dhruv ALHs flew in South American skies, HAL planned to set up major support infrastructure to pull in even more customers.

Five years ago, with the Chilean Air Force poised to buy the cheap and rugged Dhruv, Washington’s pressure allegedly forced Santiago to opt for US-made Bell helicopters. HAL bounced back by selling Ecuador five Dhruvs in 2008; Ecuador is reportedly considering a follow-up order. Chile, too, continues to watch with interest.

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http://www.business-standard.com/india/storypage.php?autono=358949

All the countries in the world are promoting their products for export. But we have these bloody stupid bureaucrats who shoot down export orders. If HAL has lot of orders why not expand the assembly lines? This is realy weird. Thats one of the reason why we NRIs do business in other countries and not India. India is a difficult country to do business. These bloody bureaucrats do nothing but have their own stupid ways and know nothing. And top of that they want money without doing anything for their pockets. India is a democratic country and the people should look for ways to get rid of stupid bureaucracy at every stage. There is so many problems which are the result of these bloody bureaucrats and politicians. In the last 62 years of independence, half of the population is poor, why? who is to blame, the bloody politicians and bureaucrats.