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. |
