Indian navy sinks Chinese speedboat sale
India's Defence Ministry has vetoed the purchase of Chinese-made speedboats by the state-run Oil and Natural Gas Corporation on grounds of national security.
The Hindustan Times reported that the corporation came close to awarding the contract to a Chinese firm, which quoted the lowest price in a tender. But the Indian navy, whose approval is required for buying offshore accessories from foreign firms, refused permission.
'We were bluntly told that importing speedboats from China would compromise national security,' a corporation official said.
The oil exploration firm is now inviting fresh bids.
The broad specifications for the speedboats stipulated that they be 23 metres long, have a draught of 1.5 metres and attain a maximum speed of 28 knots.
Analysts say India is extremely wary of any Chinese role in its defence or telecommunications sectors despite improving political and trade relations between the nuclear neighbours.
They cite the case of Huawei Telecommunications India, a subsidiary of Chinese telecom firm Huawei Technologies, whose proposal to invest US$60 million has yet to be cleared by the federal government. Visas are also denied to Chinese engineers. Huawei says it applied for six visas a year ago but has yet to receive a reply from the Indian government.
Trade between China and India soared to more than US$13 billion last year, from US$100 million a decade ago. In 2003, the two countries held their first joint naval exercises with a handful of ships off China's eastern seaboard. Last year, India's army chief made a first trip to China in a decade.
