India mixes arms and energy
access By Siddharth Srivastava
NEW DELHI - India's energy needs and
status as a big global arms purchaser from some
and supplier to others are increasingly becoming
intertwined. Having lost out to China in several
direct bids for energy sources around the world,
the tying up of energy needs with arms supplies or
purchase contracts is emerging as a subtle, even
if unstated, strategy.
'There is a
thinking in the government that a connection can
be made between military relationships and access
to energy sources," said a senior government
official, on condition of not
being
named. "Obviously such a relationship is being
played out in a very quiet manner, as any
enunciation of the same can result in negative
repercussions."
According to these
sources, such a strategy is being played out in
Central Asia, where India's air base in
Tajikistan, a former Soviet republic, will be
operational by the end of this year. This will be
India's first real overseas military facility.
Indian forces have been previously involved in
humanitarian efforts internationally.
A
joint operation at the Ayni Air Base near the
Tajik capital Dushanbe is expected to be completed
by this month, and the base will be operational by
December. New Delhi is looking to station at least
12 MiG-29 fighters at Ayni. India has also offered
to rebuild the Varzob-1 hydropower plant in
Tajikistan. Observers say India's interests in the
region's vast gas reserves is behind the foray. A
closer intelligence-gathering network to monitor
radical Muslim outfits in the region because of
its proximity with Jammu and Kashmir is the other
main purpose.
In Africa, Indian energy
firms have linked energy ties with other
infrastructure support.
Even as it tried
hard in Africa and Russia for energy, India has
always relished the idea of tapping Central Asian
gas and petroleum resources. However, access has
always been a problem because of geographical and
political limitations, unlike, say, Qatar,
Algeria, Indonesia or the Middle East, which are
outside the envelope of trouble spots such as
Afghanistan and Pakistan.
New Delhi is
seeking access in Kazakhstan and looking at
megaprojects such as the
Iran-Afghanistan-Pakistan-India (IPI) gas pipeline
and another connecting Turkmenistan, Afghanistan,
Pakistan and India. The Turkmenistan pipeline does
not involve either Iran or the United States, and
thus has none of the geopolitical problems.
However, there is every likelihood of
encountering major security problems in these
regions, with radical outfits such as the Taliban
exercising control over vast areas of Afghanistan,
as evidenced by the recent kidnapping and killing
of South Korean hostages.
In this context,
a military base in Tajikistan can provide
additional leverage, critical intelligence inputs
and the ability to keep a closer eye on key
energy-rich centers of the region. Security cover
can be provided to any pipeline network.
New Delhi is looking for new energy-source
centers as Iran is slipping as an energy partner,
which some say is due to Washington's insistence
that New Delhi should stay away from Tehran on all
energy matters.
Last week Rakteem Katakey,
Iran's energy and economic counselor in India,
said Iran could send its gas all over the world
and it is up to India to decide what it wants.
Iran has also informed state explorer ONGC (Oil
and Natural Gas Corp) Videsh Ltd that a memorandum
it signed for the development of the Jufeyr and
Yadavaran fields has expired.
With this,
the future of India's LNG (liquefied natural gas)
deal with Iran that was linked to the development
of those fields is also in question.
India, Iran and Pakistan have been trying
to sort out pricing, transit and security issues
related to the US$7.5 billion IPI pipeline. Tehran
has said it is looking to begin supply of gas to
India by 2011. However, until the deal is finally
inked, there is no certainty.
There has
been a new twist, with India and Pakistan recently
saying they are opposed to the draft agreement
Tehran has submitted seeking revision of price at
any time during the contract period.
Indian Petroleum Minister Murli Deora, who
is in Tehran this week, has described the Iranian
proposal as partisan. New Delhi is already unhappy
with Tehran reopening price negotiations to an LNG
deal signed earlier.
Moving on to another
region to the east of India where military aspects
are coming to the fore, Amnesty International has
recently quoted "credible sources" to say that New
Delhi has plans to sell military helicopters to
Myanmar that will undermine a European Union arms
embargo on the military-ruled country.
India's proposed sale of the Advanced
Light Helicopter, which includes components from
the United Kingdom, Germany, France, Sweden, Italy
and Belgium, may harm the EU's almost 20-year
restriction on such sales to Myanmar, whether
"directly or indirectly", the London-based group
has said.
There is no denying that India
still wants to have access to Myanmar's rich gas
sources if it can, despite China stealing a march
in the country. The thinking in New Delhi seems to
be that India, beyond just the economics of buying
gas, will have to extend strategic support,
including supply of arms to Myanmar, to stand a
chance against China.
Recently, India's
Ministry of External Affairs faulted the Petroleum
Ministry and its Gas Authority of India Ltd
utility for failing to follow up the Myanmar
government's initial offer of gas from two
offshore areas where two Indian state-owned
companies hold 30% equity.
One more
country where defense and energy, although of
another variety, are increasingly interlinked is
the US.
A final version of the Indo-US
civilian nuclear deal has been sealed, and that
should pave the way for India to access
nuclear-fuel supplies for electrical-power
generation. An understanding seems to have been
reached regarding India's reprocessing rights and
the consequences of a nuclear test. India, it
seems, will have the option to seek deals with
other nations should relations with the US sour
over supplies of nuclear fuel and technology.
However, Washington has benefited in the
form of defense contracts from India. In May,
India and the US finalized a Hercules transport
plane deal worth more than $1 billion. This is the
single largest Indian military purchase to date
from the US.
New Delhi allowed the US
nuclear-powered aircraft carrier USS Nimitz to
dock at Chennai early last month. US companies,
meanwhile, are considered to be the front-runners
for the biggest single jet-fighter contract that
India plans to sign for close to $10 billion.
Energy and arms always makes a heady
combination. The US attack on Iraq was never about
Saddam Hussein only.
Siddharth
Srivastava is a New Delhi-based
journalist.
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