Lifting of curbs on Isro, DRDO ...

source:http://epaper.timesofindia.com
The United States on 24th Jan (Monday) removed several Indian
government defense-related companies, including four subsidiaries each
of DRDO (Defense Research and Development Organisation) and Isro
(Indian Space Research Organization), from the so-called entity list,
in an effort to drive hi-tech trade and forge closer strategic ties
with India.
With this, the 13-year old squeeze on export of high-tech,
dual-use items to the Indian defence and space entities, imposed after
India's nuclear tests in 1998, comes to an end. "Today's action marks
a significant milestone in reinforcing the US-India strategic
partnership and moving forward with export control reforms that will
facilitate high technology trade and cooperation," US commerce
secretary Gary Locke said.The lifting of curbs, described by the
administration as the first steps to implement the export control
policy initiatives announced by president Obama and Indian prime
minister Manmohan Singh on November 8, 2010.
The government-run companies that have been relieved from the
onerous curbs on US exports include Bharat Dynamics Ltd(BDL), which
makes India's missiles and munitions; four subsidiaries of DRDO
(Armament Research and Development Establishment,Defense Research and
Development Lab, Missile Research and Development Complex and Solid
State Physics Laboratory) and four subsidiaries of Isro (Liquid
Propulsion Systems Center, Solid Propel ant Space Booster Plant,
Sriarikota Space Center and Vikram Sarabhai Space Center.
Removing the nine organizations from the entity list eliminates a
license requirement specific to the companies, and results in the
removed companies being treated the same way as any other destination
in India for export licensing purposes, US officials explained. Most
import requests by the Indian entities were considered on a
case-bycase basis, with presumption of denial changing to assumption
of approval as ties improved after the tense months that followed the
nuclear tests.
Now, it would appear the relaxation of export controls is aimed at
more than just ginning up hi-tech trade and American exports. The US
commerce department's bureau of industry and security (BIS) on Monday
published a federal register notice which updates the export
administration regulations (EAR) relating to India in several ways.
They include not just lifting curbs on the Indian entities, but also
removing India from several country groups in the EAR. Countries that
figure in EAR include China, Pakistan, Russia, and in some instances,
even Israel.