Paris, July 02, 2006 (PTI)

French defence companies, which for the past decade have emerged as third largest weapons and armament system suppliers to India, may now opt for operating under Government-to-Government umbrella to avoid controversies in mega sales deals.

"We may prefer to opt for the system the American companies are doing defence business in India", a top executive of European defence major said here.

The proposal by French companies appears to have been triggered by recent allegations of payment of commissions in the multi-billion euro deal for the purchase of Scorpene Submarines. The industry majors are also planning to take up this issue with French President Jacques Chirac.

With the recent increase in Indian defence outlay, major French defence companies are bidding for deals to sell sophisticated civil and military radars, jet fighters and other weapons systems.

Jean Paul Perrier, Executive Vice-Chairman of the European defence company Thales International said, "There has been no slow down in our interest in India. On the contrary, we are very keen to step up contracts with New Delhi both in defence and civil sector".

He said his company was on the verge of submitting a final commercial offer for upgradation of Indian Air Force's 52 Mirage-2000 fighters.

Though he did not elaborate, the company is proposing to Indian Air Force to upgrade the Mirage to Mirage-2000-5 or Mirage 2000-9 level.