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June 14, 1997

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India 'concerned' about US exports curbs on BEL

India has voiced its ''strong concerns'' about the recent decision by the US to curb its exports to the Bangalore-based Bharat Electronics Limited, suspected by of involvement in India's missile programme.

Speaking after his discussions on the issue with state department officials, Cabinet Secretary T S R Subramanian said the US had taken this extreme step without properly investigating BEL's production line, which was devoted exclusively to peaceful purposes.

Subramanian said the public sector electronics unit had nothing to do with the missile programme as alleged by the US commerce department which decided to take punitive action. He also took up the matter when meeting commerce department officials.

BEL, he said, imported items worth $ 15 million from the US last year against numerous licences. On an average, the Indian electronics giant imports American goods worth $ 20 million to 25 million annually.

BEL builds radar communication equipment for defence services and also items for the broadcasting industry.

However, according to the 'risk report,' published by the Wisconsin Project on Nuclear Arms Control, a Washington-based research organisation, BEL manufactures electronics for rockets and launch vehicles used by the Indian Space Research Organisation. The report has been denied by the Indian government.

Subramanian said he welcomed the US ratification of the Chemical Weapons Convention which India had already done, but expressed concern at Pakistan's failure to do so. The Cabinet secretary said the US side had promised to take up the issue with Islamabad and persuade it to fall in line.

The controversy over the alleged movement of Prithvi missile did not figure in the discussions. Nor did the US side raise question of the Comprehensive Test Ban Treaty which Bhutan, India and Libya had not signed.

Subramanian, who is currently heading an Indian delegation comprising senior government secretaries and industrialists, said the team had "good discussions" with US investors in New York and Washington. The delegation will now proceed to San Francisco, the last leg of its week-long tour.

The Cabinet secretary said India required $ 250 billion over the next year to strengthen and expand its infrastructural facilities to sustain the present higher rate of growth which had been over seven per cent during the past three years against the annual average of 3.5 per cent. He said the US had been the biggest investor in India and he hoped the trend would continue.

Subramanian and the officials accompanying him had apprised American investors of the facilities available in India. India had introduced far-reaching changes in its infrastructure sector, by allowing the private sector, both domestic and foreign. He said these policy changes were not known in the United States. The delegation's main purpose was to bridge this information gap.

Besides the Cabinet secretary, the delegation includes Dr Shankar Acharya, chief economic advisor to the finance ministry, Surface Transport Secretary Yogendra Narain, Coal Secretary N P Bagchee, Director General (Hydrocarbons) Dr Avinash Chandra and Additional Power Secretary Pradeep Baijal.

RELATED STORY:
Indian electronics firm faces US export sanctions

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