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.
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.
The defense ministry has issued a Letter of Request to the US Government for the procurement of 145 pieces of M777 light howitzers, manufactured by BAE Systems.
Charles Burke, Director of Business Development for Boeing’s Global Strike Rotorcraft said at the Dubai Air Show held last week, “Well, we’ve heard from the Indian government that the Apache’s the last man standing.”
US defense and aerospace company Boeing is to start building the the air-to-surface Harpoon missiles ordered by the Indian Air Force (IAF) for their Jaguar maritime patrol aircraft.
The Indian Air Force (IAF) is looking for 22 attack helicopters through a tender, where Boeing’s Apache is up against the Russian Mi-28, and in the event the former is selected, some components of the aircraft will have to be purchased through an FMS.
The US Defense Security Cooperation Agency (DSCA) has issued a notification to the US Congress for the possible Foreign Military Sale of ’21 AGM-84L Harpoon Block II Missiles and associated equipment, parts and logistical support for a complete package worth approximately $200 million’.
The amount of USD 4.1 billion ‘more closely represents the case value in its current state and that figure only includes the options India is actually considering’, according to a US Government source.