US eases curbs against BEL

WASHINGTON, Oct 5: The beleaguered Indian scientific community reeling under failed space ventures has something to smile about: the United...

WASHINGTON, Oct 5: The beleaguered Indian scientific community reeling under failed space ventures has something to smile about: the United States has eased the sanctions it had slapped against Bharat Electronics Limited BEL.A notification in the Federal Register this week said sanctions against seven of the nine BEL units are being removed. Two other BEL units, those in Hyderabad and Bangalore, will continue to be under scrutiny. But they will require a license to import items that are restricted for all countries, not just for India.

The US decision follows India8217;s unhappiness conveyed in the aftermath of the Clinton-Gujral meeting in New York last month. Indian officials who met their US counterparts in the margins said Washington8217;s actions were needlessly heavy-handed considering BEL8217;s procurement patterns were transparent and above-board.

Moreover, the sanctions had adversely affected official level bilateral dialogue between the two countries. Exchanges between defence delegations between the two countries had been held up, because Dr V K Koshy, Chairman of BEL, was a member of the Joint Technical Group JTG which is part of India8217;s Defence panel which was to hold talks with a Pentagon delegation.How could the United States discuss technology transfer with the Indian group when one of the members of the panel had been sanctioned, New Delhi had questioned.

The US Commerce Department8217;s Bureau of Export Administration had sanctioned BEL in May this year for the company8217;s alleged involvement in India8217;s missile programme. BEL buys about 50 million worth of American high-tech goodies, with orders placed mostly from its New York office.

The easing of sanctions did not come without an inter-agency battle involving the departments of Commerce, Defence, State and the NSC in the Clinton administration. Proliferation hawks within the administration and those on the sidelines, whose funding and existence depends on keeping up the feeding frenzy about errant states, opposed the relaxation.

But the Clinton administration appeared firm about improving the atmosphere in Indo-US ties in the run up to a series of visits to New Delhi beginning with Under Secretary Thomas Pickering8217;s sortie later this month. There are conflicting reports about the sanctions imposed on three other Indian entities, including the Bhabha Atomic Research Centre. While some analysts say more relaxation is imminent, others said more Indian outfits may be added to the list.