US howitzer deal to be inked soon

New Delhi: India and the United States may soon sign a Rs 5,500-crore deal for 145 M777 ultra-light howitzers that was cleared by the Defence Acquisition Council on June 25. This deal was among the major projects under the Foreign Military Sales (FMS) route reviewed by India and the US on Thursday at the meeting of US Vice-Adm. Joseph Rixey, director of the Defence Security Cooperation Agency, with his counterpart in India’s defence ministry. Defence sources said the Cabinet Committee on Security had already approved the deal, the first for artillery guns since the 1980s’ Bofors scandal. The first two howitzers will reach India within six months of the contract being signed, while the rest will be delivered at the rate of two per month.

Sources said a number of key projects, including one for 22 Predator Guardian drones, that is at an advanced stage of negotiations, were discussed, besides other projects that have already been signed.

The visit comes ahead of a scheduled trip by outgoing US defence secretary Ashton Carter next month.

Adm. Rixey’s visit was for the annual meeting to review defence acquisition and defence trade matters. On the issue of M777, sources said India had sent a Letter of Request to the US government showing interest in buying the guns, which will be deployed in high altitude areas in Arunachal Pradesh and Ladakh, bordering China.

The US had responded with a Letter of Acceptance, and the defence ministry had in June examined the terms and conditions and approved them. The offsets, under which BAE Systems, manufacturers of the gun, will invest about $200 million, will be pursued independently.

While 25 guns will come to India in flyaway condition, the rest will be assembled at the proposed Assembly Integration and Test facility for the weapons system in India in partnership with Mahindra.

Sources said a number of key projects, including one for 22 Predator Guardian drones, that is at an advanced stage of negotiations, were discussed, besides other projects that have already been signed.

The visit comes ahead of a scheduled trip by outgoing US defence secretary Ashton Carter next month.

Adm. Rixey’s visit was for the annual meeting to review defence acquisition and defence trade matters. On the issue of M777, sources said India had sent a Letter of Request to the US government showing interest in buying the guns, which will be deployed in high altitude areas in Arunachal Pradesh and Ladakh, bordering China.

The US had responded with a Letter of Acceptance, and the defence ministry had in June examined the terms and conditions and approved them. The offsets, under which BAE Systems, manufacturers of the gun, will invest about $200 million, will be pursued independently.

While 25 guns will come to India in flyaway condition, the rest will be assembled at the proposed Assembly Integration and Test facility for the weapons system in India in partnership with Mahindra.