BAE Systems and the U.S. government will deliver 25 M777 Ultra Light Howitzers off the shelf, while a further 120 will be assembled in India with Indian partner Mahindra.
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.
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.