Japan's ShinMaywa is looking at manufacture of parts and their assembly besides part -manufacture of the full flight simulator of its US-2i amphibious aircraft in India of which the Indian Navy wants to buy 12 units for $1.5 billion-$1.6 billion.
A source close to the deal told defenseworld.net on Thursday that that the company would also look at maintenance, repair and overhaul (MRO) of the aircraft in India.
"We have done an extensive study in these areas and are now pretty sure, about the capability that exists and that could possibly be transferred," he said while denying media reports that there were plans to manufacture the aircraft in India under the 'Make in India' program.
He said third party sale does not come into picture, if the numbers don't match the manufacturing requirement. "However, our aim is to ensure maximum possible development of the aeronautical industry manufacturing base in India. That is what we had planned from the beginning. In our own limited way we would explore the maximum spectrum of aeronautic industry to create cooperation wherever possible".
He however added, "Presently both the governments (of India and Japan) are under discussion (regarding the US-2i aircraft deal) and we would wait for their decision and comply".
Indian Prime Minister Narendra Modi announced in mid-2014 his wish to buy US-2 amphibious aircraft for the Indian Navy. However, negotiations suffered as the Japan refused to lower the quoted price of $133 million per aircraft.
Negotiations were revived in September last year, as various media outlets reported that Japan was considering reducing the price as much as possible for the aircraft deal with India.
Govt of Japan has invited Govt of India to discus costing issues as part of G to G discussions. GoJ is completely willing to discuss the costing issue