The government is moving swiftly to mollify the American establishment that is deeply upset over rejection of both their fighter aircraft from the $10 billion MMRCA (medium multirole combat aircraft) contract for the Indian Air Force. Among the steps being taken is a decision to significantly increase the order for C-17 Globemaster-III strategic airlift aircraft from Boeing from the present projection of 10. TOI had first reported about the C-17 deal on May 13.
Besides, the Army is moving quickly to conclude a $1 billion purchase of ultra light howitzer guns in a couple of months. An Army quality assurance team is in the US for final leg of assessments.
Sources said the American side has been told about India's interest to continue with FMS (foreign military sales) government-to-government deals as well as the decision to look at "significantly larger" order for C-17 aircraft. "Ultimately, the total C-17 purchase could be very close to the MMRCA deal," a source said.
He said the Americans were "told" at various levels about India's desire to look at purchasing five to seven more C-17 aircraft. If India were to buy seven more C-17s, then the total deal value would be well over $7 billion. Already, the IAF has a purchase order for 10 of these aircraft.
The MMRCA contract for 126 fighters in which both Boeing's F-18 and Lockheed Martin's F-16 were rejected a few days ago is worth approximately $10 billion.
The Cabinet Committee on Security is expected to approve IAF's original projection for 10 of these transport aircraft, pegged at over $4 billion. The proposed five-to-seven more aircraft "would be approved over the next few months", sources said. Work on increasing the C-17 order is already underway. Among the security agencies set to acquire the massive military aircraft is Aviation Research Centre, the external intelligence agency RAW's aviation arm. Given its capability to airdrop over 100 commandos, C-17s would also be acquired for improving Special Forces capabilities outside of the military, sources said.
Meanwhile, the Army has dispatched a team to the US to carry out quality assurance assessments of maintenance and other technical specifications of M777, the ultra light howitzers manufactured by BAE Systems US and which is proposed to be acquired for deployment in mountains.
Once the team returns, "it wouldn't take much time to conclude the deal", sources said, adding that a June-end deadline was being looked at. He also hinted that this order too could go up, now that the government is expected to approve Army's recommendation to raise a dedicated mountain strike corps for China border.
Its reported that USA won't be buying more C-17 and that Boeing annual production is of 16 C-17 and they have plans to scale it down. So if India orders it now can we get all of these plane in say 2-3years??
F16/F18 are old technology and old frame aircrafts.
C-17, yes would be a good transporter to have and its a force multiplier for IAF.
we should be buying american arms which are technologically new and superior and not to worry about strings attached to them as end users.
do you think pakistan give a damn about strings attached to the arms and hardware/equipment they buy from yanks?
i like this comment>>"He also hinted that this order too could go up, now that the government is expected to approve Army's recommendation to raise a dedicated mountain strike corps for China border."
JAI HIND
Last edited by Sikh_warrior; 18-05-11 at 10:44 AM.
After considerable diligence and mathematics, India is all set to purchase 10 C-17 Globemaster strategic lift aircraft from US for $4.1 billion, with upfront offsets of $1.12 billion.
The Cabinet Committee on Security on Wednesday will consider a revised proposal for purchase of C-17s which, for the first time, outlines the offsets including a High Altitude Engine Test Facility and Trisonic Wind Tunnel Facility valued at $510 million, for the Defence Research & Development Organisation.
India’s access to advanced technology air tunnel would be important as it has depended on Russian test facilities to evaluate the indigenous Kaveri jet engine, which was to be used in the LCA project.
The other half of the offsets, according to the proposal, would be shared between Hindustan Aeronautics Ltd for training and maintenance for the aircraft, Tata Consultancy Services for defence strategic communication systems and Defence Land Systems — a joint venture between Mahindra Group and BAE Systems — for armoured vehicles.
The original proposal had talked of Boeing fulfilling its obligations under the Defence Procurement Procedure “as per policy” and hence, the offset was not stated. Under the DPP, any foreign company bagging contract worth over $300 million has to invest back at least 30 per cent of it into the Indian defence sector.
However, sources said, the C-17 offsets would cost India an additional 7-8 per cent in the total outgo on the purchase as the US has explained that it would be paying more for Indian offsets than it could have got the same services and products from other sources.
With this offset promise, decks have been cleared for the biggest-ever Indo-US defence deal under the American foreign military sales (FMS) programme, a direct government-to-government contract.
The four-engine Globemaster-III giant strategic airlift aircraft is capable of carrying a payload of almost 170,000 pounds and landing even at small forward airbases with semi-prepared runways and can transport tanks and troops over 2,400 nautical miles.
F-16 agreed is old tech but f-18 International is by no means a 'old aircraft'. comes with a brand new cockpit, new MAWS, new higher thrust engine with 20% more thrust, comes with the same reliability & ruggedeness( Super Hornet has never had a crash due to technical failure), AESA, built in IRST and many many other new things. It still remains the most cost effective 4.5 gen twin engine aircraft on the market to acquire and operate through an entire lifetime. Its combat proven and the Growler is the king od Electronic attack. Overall a kickass aircraft with no equal, incredible low alpha handling, with new engine better T/W ratio, wide weapons load, it plays awacs roles as well tanker roles with all other aircraft. India rejecting the super hornet is another thing, unkil's unwillingness to budge on many things was their stupidity but SH remains a deadly aircraft any day. It was even able to kill an f-22 in a simulated dogfight.
C-17 is an awesome aircraft, i think we should order 40.
Decks cleared for purchase of 10 C-17s with offsets - Indian Express
.
After considerable diligence and
mathematics, India is all set to
purchase 10 C-17 Globemaster
strategic lift aircraft from US for
$4.1 billion, with upfront offsets
of $1.12 billion.
The Cabinet Committee on
Security on Wednesday will
consider a revised proposal for
purchase of C-17s which, for the
first time, outlines the offsets including a High Altitude Engine
Test Facility and Trisonic Wind
Tunnel Facility valued at $510
million, for the Defence Research
& Development Organisation.
India’s access to advanced
technology air tunnel would be
important as it has depended on
Russian test facilities to evaluate
the indigenous Kaveri jet engine,
which was to be used in the LCA
project.
The other half of the offsets,
according to the proposal, would
beshared between Hindustan
Aeronautics Ltd for training and
maintenance for the aircraft,
Tata Consultancy Services for
defence strategic communication
systems and Defence Land
Systems — a joint venture
between Mahindra Group and
BAE Systems — for armoured
vehicles.
Ads by Google
The original proposal had talked
of Boeing fulfilling its obligations
under the Defence Procurement
Procedure “as per policy” and
hence, the offset was not stated.
Under the DPP, any foreign
company bagging contract worth
over $300 million has to invest
back at least 30 per cent of it
into the Indian defence sector.
However, sources said, the C-17
offsets would cost India an
additional 7-8 per cent in the
total outgo on the purchase as
the US has explained that it
would be paying more for Indian
offsets than it could have got the
same services and products from
other sources.
With this offset promise, decks
have been cleared for the
biggest-ever Indo-US defence
deal under the American foreign
military sales (FMS) programme,
a direct government-to-
government contract.
The four-engine Globemaster-III
giant strategic airlift aircraft is
capable of carrying a payload of
almost 170,000 pounds and
landing even at small forward
airbases with semi-prepared
runways and can transport tanks
and troops over 2,400 nautical
miles.