Bangalore: Defence Minister George Fernandes indicated that India is close to clinching a deal with British Aerospace for the Hawk Advanced Jet Trainer (AJT) and denied that the government is considering another proposal.

Asked if the government has finalised the Hawk deal, Fernandes told reporters that there is a note which has been readied for consideration by Cabinet Committee on Security.

Before reaching the Committee, it needs to be "vetted" at one or two places for taking a look at the order, he said, but added that he can't say as to how soon the deal would be signed.

Queried if the government is also looking at the Czech-US offering of L-159 AJT, the Defence Minister retorted, "We are not looking at any".

Earlier, he remarked that further delay on inking the AJT deal would mean Indian Air Force being loser.

Noting that India is in the market looking for AJTs for quite many years now, Fernandes noted that the proposal was there before he got into the Defence Ministry. "I only hope that it (AJT deal) does not survive me," he joked.

Fernandes said longer time India takes to decide on AJT, the more would be on scene (with offer of AJTs). "At the end of it all, loser will be Indian Air Force", he said.

The AJT deal for 66 numbers, according to reports, is now worth Rs 3,000 crore.

Fernandes said there is nothing wrong in Jammu and Kashmir government releasing some of Hurriyat Conference and Jammu and Kashmir Liberation Front leaders, saying, "What's in state government's power to do, they will continue to do. There is nothing wrong in that."

He noted that the current J & K government had during election campaign made certain commitments that they would undo some of the laws that apply. They would ask Army and other security forces to leave and so on.

"It's up to the state government. Army gets into any state when the state government seeks its help," Fernandes said, noting that the J & K government is disbanding some of outfits belonging to the state. "It can't disband any Central force", he pointed out.

Asked what's the movement forward now that a government has been installed in Srinagar and whether the Centre would initiate a dialogue with the state government, Fernandes said the states and Union government interact on various issues and it's a routine matter.

"In Jammu and Kashmir, there is room for continued interaction between the state government and Union government," he added.

PTI