India: India signed a tripartite agreement yesterday with Israel and Russia for the $1.2 billion sale of three Israel Aircraft Industry's Phalcon airborne early-warning systems mounted on Russian Il 76 transport aircraft, significantly altering the regional power balance with Pakistan and China, writes Rahul Bedi in New Delhi:
The agreement was finalised during a visit of the Israeli Prime Minister, Mr Ariel Sharon, to India last month. Military sources said Israel's largest export deal would be completed in four-six weeks.
India had been negotiating the Phalcon deal for several years to strengthen its defences with the airborne warning and control radar that is capable of tracking up to 60 targets over a 700-800 km range.
Pakistan criticised India's "weapons shopping spree" and warned it would trigger an arms race on the sub-continent. "We believe such defence deals will upset the conventional military balance," Pakistan's Information Minister Sheikh Rashid Ahmed said in Islamabad. The Phalcon deal was "worrying" for Pakistan, he said, adding that Islamabad was capable of defending itself.
Military sources said the deal, cleared by the US last year, was delayed for over a year as Russia tried to negotiate better terms and India sought assurances from Tel Aviv and Moscow that there would be no-last minute objections once an agreement was finalised.
India was mindful of the US veto that had torpedoed a similar sale to China three years ago, as Washington retains sale rights over the airborne radar system having contributed amply to its development. China had agreed to buy one Phalcon -equipped aircraft for $250 million with the option of seven additional planes.
But Washington declared that such aircraft would increase the threat to Taiwan and endanger US pilots in the event of conflict with China, after forcing Israel to cancel the contract and to negotiate a large compensation package with Beijing.
India is emerging as one of the world's largest arms markets with the Hindu-nationalist-led federal coalition negotiating $8-$10 billion deals. It acquired 66 British Aerospace jet trainers for $ 1.77 billion last month.