SP’s Land Forces (SP’s): The Indian Army’s Corps of Army Air Defence as well as the Indian Air Force (IAF) hold a large variety of air defence missile systems that are being phased out. Has Raytheon offered any air defence systems to replace these obsolescent missile systems? Have any presentations been made in this regard?
Sanjay Kapoor (Kapoor): Yes, and we have made an offer, approved by the US Government, of our Hawk-XXI system with embedded SL-AMRAAM (Surface Launched Advanced Medium Range Air-to-Air Missile) capability in response to the QRSAM (Quick Reaction Surfaceto-Air Missile) request from the Indian government. Are there other Raytheon systems that make sense for air defence in India? The answer to that is yes. One is, of course, the Patriot, and we are working with the US government right now to get all necessary clearances and licenses to make that happen. And as for the second question as to whether any presentation has been made on this topic, the answer to that is also yes. Over the past several years, both classified as well as unclassified presentations have been made to the Indian government on the capabilities of the air defence systems.
SP’s: In the context of presentation, has any concern been conveyed by the OEM regarding Transfer of Technology (ToT)?
Kapoor: Let me answer in context of the 12 to 16 countries where we have Hawk and Patriot. We have the same question everywhere, every country has requirements for ToT, and India is not an exception at all. Many countries require ToT, offset programmes, local manufacturing, and so on. Based on the country, we work with the US government to address every one of these individual programmes. So, for India, we will find solutions for what can and what cannot be transferred. For technology that can be transferred, we will undoubtedly work with the appropriate local companies here to try and develop indigenous capabilities.
SP’s: Do you have the US government’s support to supply the products to the Indian armed forces?
Kapoor: Again, like I said, at least in the case of the Hawk-XXI with the embedded SL-AMRAAM capability we have got the support and that’s how we responded to the request on the QRSAM proposal. We are working with the US government on other capabilities that Raytheon Company has in air & missile defence and, at this moment, progress looks good. Of late, there have been multiple developments, including the deals inked during US Secretary of State Hillary Clinton’s visit to India. Things are moving in a positive way.
SP’s: What are the capabilities proposed by Raytheon to fulfill India’s integrated air and missile defence (IAMD) architecture requirements?
Kapoor: In terms of integrated air and missile defence, everybody looks at layered defence, that is, the low tier, the mid tier and the upper tier. Based on India’s requirements, our offerings fundamentally have been the Hawk XXI and the SL-AMRAAM, and we are working with the US government to get Patriot released. The advantage that Raytheon Company offers is that we can integrate these systems. Since we are the OEMs on these systems and we are the designers of these systems, we actually know how to integrate these systems together, so they become interoperable and linked with each other. So that would be something we would work on with the Indian government at the next stage. For now, we’re trying to get the Hawk XXI and SLAMRAAM to India, followed, hopefully, by the Patriot system.
SP’s: Would you prefer offering products to India under the Direct Commercial Sales (DCS) or via Foreign Military Sales (FMS)? As a customer, which mode is friendlier to India?
Kapoor: That’s a tough question to answer. I can tell you that I do business in Japan direct. We have been doing business in Japan for 50 years, and both they and we are comfortable doing DCS, including for Patriot. I also do business in Saudi Arabia, usually direct. There are multiple other countries, like Taiwan, where it’s a formal trade. On the other hand, if I consider some of my traditional customers, like the Netherlands, Germany and Greece, they are all FMS. So it really depends on the country and the kind of flexibility its acquisition process demands. There are several advantages to the FMS process; it’s something that has always worked and the US government has some ease on it. So it really depends on what the Indian government would like; we can work both ways. Having said that, in most countries our dealings are based on FMS. It makes it a little easier, particularly for new countries aligning with the US. The process under the FMS is clean; it’s not faster but it’s clean. The pricing you get in an FMS environment is something that the US government will negotiate with the Raytheon Company.
SP’s: Have the Indian armed forces expressed any interest in your Patriot system which is the foundation of the US Army’s integrated air and missile defence architecture?
Kapoor: Yes. If you look at the Patriot system, it’s the only combat-proven system successfully deployed in two recent wars – Operation Iraqi freedom and the first Gulf war. We have had more than a thousand missile firings and tests since the system was built. So if any country is looking for a reliable, combat-proven, tested system with advanced capabilities that can handle today’s and evolving threats, then it has to consider the Patriot. At the end of last year, the United Arab Emirates signed a $3.3 billion contract for new-production Patriot fire units, so the lines are active and the new Patriot units will have the latest technology built in. We think, anyone interested in a successful IAMD structure will want to look at the Patriot system.
SP’s: Have you carried out a study on how the Patriot system could provide a canopy for defending for India’s eastern and western theatres?
Kapoor: Have we done a study? No. Are we capable of doing the study? Yes. The study would have to be coordinated in conjunction with the US government, the Indian Army, the Indian government and, obviously, engineers from Raytheon Company. Do we have simulations, models that exactly execute instructions? Obviously yes. It’s a necessity and the appropriate thing to do at the right time so that we can actually help.
