The 37 percent escalation by a margin of roughly INR 1,200 crore for the US government offer to India for 145 M-777 light weight howitzers comes into effect on Tuesday, along with the imminent closure of the assembly line for the artillery.
Carter is looking at the Indian defense ministry to make it easier for US companies to do business with it and wants resolution of issues related to offsets, limitation of liability and delays in decision-making.
The Indian defense ministry has till October to take the US government offer for the purchase of 145 light weight howitzers at the price of USD 694 million, after which the increased price of USD 885 million will come into play.
In purely dollar terms, the new price represents a 37 percent hike in the cost of the offer to India, but would effectively be even higher given the fall in the value of the rupee against the dollar since 2010.
Air Chief Marshal NAK Browne will take delivery of the second Boeing C-17 Globemaster III, scheduled to be delivered to the IAF on 22 Jul 2013 in a ceremony at Boeing’s Long Beach final assembly facility.