The India-Japan Joint Working Group (JWG) have held preliminary meetings to initiate the process for acquisition of the ShinMaywa US-2i amphibious aircraft for the Indian Navy.
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.
India has ordered a total of 123 aircraft, with the navy order for 17 aircraft being part of the contract for 57 aircraft concluded in 2010. 40 of the aircraft will be delivered to the IAF.
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 failure to consider the order by the DAC has wider implications as it is unlikely that any decision can be taken on this order by October 15, after which the value of the deal will see a 37 percent hike.
Air Chief Marshal Norman Anil Kumar Browne told reporters that the aircraft would be able to operate from the country’s northern-most Advanced Landing Ground at Daulat Beg Oldie close to the Line of Actual Control (LAC) with China.
The Acceptance Of Necessity (AON) was cleared by the Defense Acquisitions Council (DAC) in February, 2012 and at the time, the order was estimated to be worth around USD 1 billion.