Manohar Parrikar-Ashton Carter talks on defence deals today

India and the US are likely to bargain hard on Tuesday on a key logistics support agreement and a “pre-bid guarantee” on transfer of technology in case an American firm bids for “Make in India” fighter jet programme. US defence secretary Ashton Carter, who arrived in the capital on Monday from Goa, will hold delegation-level talks with his Indian counterpart Manohar Parrikar on Tuesday, following which the outcome of the deliberations will be disclosed.

Freedom of navigation in the South China Sea and joint exercises, especially in the maritime field, are among the issues that will be up on the table. The two leaders had already met in Goa where Mr Carter arrived on Sunday.

Besides that meeting, Mr Parrikar on Monday hosted Mr Carter on board India’s Russian-made aircraft carrier INS Vikramaditya in Karwar. On the US agenda will be three agreements — Communications and Information Security Memorandum of Agreement, Logistics Support Agreement and Basic Exchange and Cooperation Agreement — all resisted by the previous UPA government. However, under the new dispensation, things have changed and India is open to a tweaked LSA which facilitates the provision of logistical support, supplies, and services between the US military and the armed forces of partner countries on a reimbursable basis.

New Delhi will keenly weigh how auch a proposed deal would benefit India. Defence sources were cited by news agencies, as saying that “progress” has been made with regard to LSA but added it does not mean that it is a done deal.

Even as India holds its cards close to the chest, New Delhi has asked Washington to make it clear if the American government will stand guarantee for transfer of technology (TOT) if US-based companies were to bid under ‘Make in India’ fighter jet programme.

“The Americans will have to give a pre-bid guarantee if their firm wants to take part in ‘Make in India’ programme for fighter aircraft. Companies promise the moon but at the end, we should not be left with sand in our hands,” a defence source was quoted as saying.