NEW DELHI: India is believed to have expressed its desire to acquire a defence carner (air-defence ship) among other defence related items front kraine during the just-concluded visit of the defence minister, Sharad Pawar.

A defence carner or an air defence ship is normally used as an aerial platform for defence against submarines and missile attacks. In effect, it is a substantially reduced version of a state of-the-art carrier,

Besides, India appears to have worked out a novel package to Sustain import of defence items from Ukraine through part countertrade arrangement and part hard currency payments. Also, the two countries may open an escrow account for export of consumer items from India to Ukraine while a part of the defence-related payments will be made in hard currency 10 Ukraine,

The defence minister is believed to have indicated Indias desire to source import of spares and equipment for the MIL helicopters in service as well as the AN-32 transport aircraft. Also, Pawar during his fruitful visit, appears to have evinced interest for the Russian-made fighter aircraft fleet, especially MIG 29s.

The government, which has been toying with the idea of constructing an aircraft carrier, is finding it difficult to carry out this program because of persistent financial difficulties. Also, such a program involves both cost and time delays which the government can hardly afford at this juncture because of changing security threat perceptions. Afier phasing out of the Vikrant, the government had to satisfy the navy’s requirements through acquiring the virat, which had  already been used in the Falklands conflict by the United Kingdom

Given this difficulty, the government finds it easier to acquire a smaller defence carrier (unlike the state of-the-an air craft carrier) than to manufacture one in the country.

Vikrant is presently constructing two such carriers and is also engaged in giving final touches to the 67,500 ton Varyag, supposed to be the sister ship of the Admiral Kuznetsov. The final phase of Varyags construction is being carried out at the Nikolayev South Shipyard in Ukraine,

Already China, without an air craft carrier till now, has staked its claim to acquire one from Ukraine, Indications are that the deal between China and Ukraine is centered on acquiring the Varyag, which appears to be in the final stages.

Other defence-related items such  as spares and maintenance equipment for the Russian-made fighter aircraft in the Indian Air Force, also prominently figured in Pawars talks with his counterpart in Kiev, It may be recalled that India imported over Rs 1 ,S00crore worth of spares from the erstwhile Soviet Union annually.

As regards the funding package for defence imports, the two sides, have agreed to evolve a package involving both countertrade arrangements as well as hard currency payments.

Ukraine initially was eager to have trade in freely convertible Currencies,

The visit of Pawar, however, appears to have paved the way for anew payments package particularly for Indias defence imports. Ukraine, which is one of the better Organized republics in the erstwhile Soviet Union in region to establish a direct relationship with India.

As a prelude to Pawars visit, about45 Indian firms successfully held an exhibition of their products last month.

The response from the Ukraine administration was encouraging.

A hot of consumer goods, ranging from consumer electronics to cosmetics from India were displayed in this exhibition,

Ukraine’s share in exports from India is estimated to be around 20% of the total trade with the erstwhile Soviet Union.

Ukraine  which is facing the challenge of modernizing its economy, according to sources, views, India as its major trade partner.

Article extracted from this publication >> October 30, 1992