India’s plan to procure145 BAE Systems M777 155 mm/39 calibre lightweight howitzers deal is being fast tracked by signing a letter of acceptance (LoA) by the Pentagon and Indian MoD.
“LoA is in the process of being finalized following broad agreement on its content between the Indian MoD and the Pentagon,” Janes reported Thursday.
The LoA includes revised tender price of an approximate US $700 million, delivery schedules, and guarantees and after sales support.
Industry sources said the MoD had also instructed BAE Systems to submit by the end of October its offset agreements with local companies, which are valued at 30% of the overall contract value and estimated to be worth around USD200 million.
The India Defense Acquisition Council cleared the procurement of M777 howitzers made by BAE Systems of the US in May this year.
International companies such as Denel, Rosoboronexport and BAE Systems had bid for a proposal to procure 814 artillery guns worth $2.5 billion in 2010. BAE Systems had won the contract to supply 145 M777 ultra-light howitzers worth $493 million.
Despite negotiations running into years, talks had broken down last year over price. “The case for procurement of ultra-light howitzer guns through the US government has not progressed due to cost issues and because the vendor has not been able to come up with a proposal fully compliant to the offset requirements,” the then-defense minister Arun Jaitley had told Parliament in July last year.
BAE Systems has offered to set up an assembly line with a local partner to make the guns domestically.
Indias Defence Acquisition Council tonight cleared the procurement of M777 howitzers made by BAE Systems of the US. A council meeting chaired by Defence Minister Manohar Parrikar approved the purchase and the start of negotiations with the US government as it will be a procurement under the Foreign Military Sales program
BAE Systems has received an order for 93 additional M777 howitzers, taking the order book to 955 systems and taking sales for the programme to over £1bn. The US is buying 58 guns for the US Army and U
India has signed a deal with the US for importing 145 BAE Systems' M777 lightweight Howitzers costing $750 million. BAE Systems anticipates signing a contract in the coming weeks with the US Department of Defense to supply 145 M777 Howitzers to the Indian Army, the company said in a statement Wednesday
Indias Defense Acquisition Council (DAC) has approved purchase of 145 M777 ultra-light howitzer guns for $750 million from US and also cleared bulk production of 18 Dhanush guns among 19 proposals included in the discussions during the meeting Saturday. DAC reviewed large numbers of on-going schemes worth approximately INR 28,000 crore ($4
Indian coast guard has commissioned two vessels, ICGS Apoorva Fast Patrol and Interceptor Boat C-421 into coastal security. The ICGS Apoorva is a 50 meter long boat capable of speeding at 33 knots and can displace 317 tonnes
American and Indian industries have identified 25 new technologies for transfer to the latter under the defense trade and technology initiative (DTTI) to be made in India. This follows an earlier attempt to offer India 17 technologies under the DTTI which did not find favor with Indian defense industries with one observing commenting that the technologies on offer were “Mickey Mouse” stuff
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