India hints at reopening Hawk deal

India could switch to the Czech L-159B

Indian Defence Minister George Fernandes has hinted that a £1bn ($1.55bn) deal to buy Hawk jet trainers from Britain's BAE Systems may be reopened to cheaper bidders.

"Half a dozen aircraft could now be said to be in contention for the multi-billion pound deal", he was quoted as saying by the Press Trust of India.

The Hawk deal has been under discussion for two decades

"I am at my wits end," Mr Fernandes said.

The comments come after recent assurances that the deal for 66 BAE System Hawks, which has been under negotiation for about two decades, was about to be signed.

India has received an offer of modern L-159 trainers from the Czech company Aero Vodochody for about 20% less than the Hawks, which were designed 25 years ago.

But Mr Fernandes said re-opening of the deal could add years to the acquisition and meanwhile the Indian Air Force's pilot training would suffer.

Other offers

"It is not the price or the sanitization of American turbo engines in the British Aerospace Hawks" that is holding up the deal, Mr Fernandes said.

The minister recently said that the price for the deal with BAE Systems had been agreed.

India had also demanded that the Hawks must be free of all American components, after the US government froze the sale of spares for British-made Sea King and Harrier jump jets following its nuclear tests.

Apart from the Czech L-159, Italy¿s Aeromacchi MB154 and the Russian MIG-AT have been offered to the Indian government.

BAE Systems recent said almost 2,500 jobs would be secured at its Brough plant in East Yorkshire if the deal went ahead.

Foreign secretary Jack Straw has confirmed the government has approved the sale to India of components and production equipment for Hawk jet trainers.