French defence firms push for US model, want govt-to-govt dealings

With the recent increase in Indian defence outlay, major French defence companies are looking at selling sophisticated civil and military radars, jet fighters and other weapons systems.

Jean Paul Perrier, executive vice-chairman of the European defence company Thales International said, ‘‘there has been no slowdown in our interest in India. We are very keen on stepping up contracts with New Delhi both in the defence and civil sectors.’’

Without elaborating, he said his company was on the verge of submitting the final commercial offer for upgrade of Indian Air Force’s 52 Mirage-2000 fighters to Mirage-2000-5 or Mirage 2000-9 level. Thales recently upgraded the French Air Force’s Mirage-2000 fighters to the Mirage 2000-9 mark.

Even as Thales officials were proposing the upgrade of Mirages to India, the manufacturers’ of the fighters, Dassault, formally launched in service this afternoon, the company’s new futuristic fighters Rafale.

Labelling new Delhi as a ‘‘very strategic’’ partner for Thales, Perrier said his company was ready to take its frontline weapons technology to India and for this it was proposing to set up a wholly owned subsidiary in the country.

He said that Thales had already started a company in India to support its weapon and civil sales contracts. ‘‘We plan to start a major software centre in Chennai later this month,’’ he said. The software company, in five years, would employee more than 1,000 experts and would gradually become an outsourcing point for major Thales manufacturing activity.

He also said that Thales was in talks with two major Indian companies to set up a joint-venture in India to support its activity in India and other neighbouring countries.

‘‘We wanted to work with public sector undertakings but as it may encounter many difficulties we opted for a joint-venture with a major Indian private company,’’ he added.

Although Perrier refused to name the company, sources said Thales had finalised a joint venture with Larsen & Toubro.

But Perrier said Thales wanted similar ventures with public sector undertakings. ‘‘If your government opens defence and other PSUs, Thales would like to invest in them.’’

On off-sets, he said Thales had already worked out elaborate plans for undertaking such ventures in India in case agreements were reached at on future sales.

On the Scorpene deal allegations, he said Thales would fight till the last to clear its name and win the defamation suit it had filed.