India tells US, Can’t buy M777 howitzer due to Price Hike

Discussion in 'Indian Army' started by Neeraj Mathur, Aug 17, 2014.

  1. Neeraj Mathur

    Neeraj Mathur Regular Member

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    India tells US , Can’t buy M777 howitzer due to Price Hike


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    India has told the US that in view of the price increase, it cannot go ahead with the procurement of 145 ultra-light howitzers for the Army, which plans to deploy such artillery guns in mountainous terrain.

    During talks with US officials at the time of American Defence Secretary Chuck Hagel’s recent visit, it was conveyed by India that it cannot go ahead with the deal due to the price hike asked for by the equipment manufacturer, Defence Ministry sources said here.

    Till early 2013, the deal for the M777 howitzers was expected to cost India around ?3,600 crore but due to the delay in finalising the deal, the American side sought an increase of over ?300 crore in August last year.

    The sources said the US side has conveyed that the production line of the howitzers has been closed down and India will have to pay for its reopening and the costs may escalate further if there are more delays in finalising the deal.

    Under the procurement process, certain procedures have to be followed and it is difficult to justify a price hike in the middle of negotiations for the contract, they said.

    Recently, Defence Minister Arun Jaitley had stated that the deal has not progressed due to issues over cost of the deal and offsets requirements.

    “The case for procurement of the ULH guns through the US government has not progressed due to cost issues and because the vendor has not been able to come up with a proposal fully compliant to the offset requirements,” he had said.

    India tells US , Can’t buy M777 howitzer due to Price Hike | idrw.org
     
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  3. perplexed

    perplexed Regular Member

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    the production lines are closed ? US won't need any of these howitzers ? Thats weird !
     
  4. rock127

    rock127 Maulana Rockullah Senior Member

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    Great!

    First delay the procurement for decades resulting in price rise and then scrap the deal.

    Is there any quick alternative we have now?
     
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  5. pmaitra

    pmaitra Moderator Moderator

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    No, we have no quick alternative.

    If we have a quick purchase, the critics will accuse the government of rushing through it, and not evaluating other options. If we delay, then there will be price hike. Moreover, delays are inevitable, because, it is not just buying them, but also working out the fine details, that also involve convincing the Indian government officials and committees, and the US Congress.
     
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  6. Sam Manekshaw

    Sam Manekshaw Regular Member

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    Wait there was news about BAE system saying the price which is offered is ceiling price.... Actual price is less than they quoted recently..... I don't understand if it's FMS deal via US then why the hell BAE talkin'?
     
  7. Sam Manekshaw

    Sam Manekshaw Regular Member

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    Thanks to the saint A.K.Antony for that...he has made lot of mess for sake of his image.
     
  8. pmaitra

    pmaitra Moderator Moderator

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    At least, he has a clean image.

    Damned if you do, damned if you don't.
     
  9. rock127

    rock127 Maulana Rockullah Senior Member

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    This would happen in every defense deal.

    The way Rafale deal is going same might happen.We are running way behind every schedule whether its home made of imported. :tsk:

    There should be some cut off time or fast track in these deals specially which are critical.
     
  10. pmaitra

    pmaitra Moderator Moderator

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    I hope the Rafale deal is concluded quickly.

    Regarding M777 howitzers, I think we can procure them domestically. How good is Kalyani's stuff looking?
     
  11. Yatharth Singh

    Yatharth Singh Regular Member

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    Clean in the eyes of law. But how much justice he did with his job is well known to everyone. He was given the responsibility to do his JOB cleanly and not save HIS own image as a clean minister after watching the fate of his colleagues. Doing nothing when on a responsible position is as worse as abusing one`s power.
    If he was so much concerned about his image then perhaps he shouldn`t have entered into the politics in first place.
     
    Last edited: Aug 18, 2014
  12. rock127

    rock127 Maulana Rockullah Senior Member

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    If domestic companies can provide comparative stuff then its just the BEST!

    Also it would give a clear signal to those who keeps on increasing the price whenever they want since they take India as milking cow and the obsession of imported stuff.

    Artillery is one of the base of any ground force and we need it quickly.

    Any idea about how much local stuff we have in operation and in pipeline?

    http://www.kalyanigroup.com/ArtillerySystems.asp
     
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  13. rock127

    rock127 Maulana Rockullah Senior Member

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    He keeps putting even the #1 companies in the specific segment on blacklist thus leaving with the options of other which are not top class. Getting 2nd 3rd level stuff means compromising on quality and delays.

    The scam needs to be banned and not the #1 companies.He banned Rolce Royce engines some while back which is #1 in it's segment.
     
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  14. pmaitra

    pmaitra Moderator Moderator

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    Yes, I think he was gripped by fear in light of the numerous scams.

    Yes, I think he was gripped by fear in light of the numerous scams.

    One cannot make everyone happy. No matter what one does, there will always be some critic. The idea is to keep a clean conscience, and get the job done.

    +1

    Yes, I agree. A country that launches satellites should not be importing artillery.
     
    rock127 likes this.
  15. pmaitra

    pmaitra Moderator Moderator

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    Yes, I think he was gripped by fear in light of the numerous scams.

    Yes, I think he was gripped by fear in light of the numerous scams.

    One cannot make everyone happy. No matter what one does, there will always be some critic. The idea is to keep a clean conscience, and get the job done.

    +1

    Yes, I agree. A country that launches satellites should not be importing artillery.
     
  16. pmaitra

    pmaitra Moderator Moderator

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  17. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    I believe the Mandus Group is yet to design the system.
     
  18. laughingbuddha

    laughingbuddha Regular Member

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    Yet to .... not very encouraging.
     
  19. Sam Manekshaw

    Sam Manekshaw Regular Member

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    The M.O.D. is charged with the responsibility of internal and external security of the Republic of India. What benefit our armed forces got from his clear image???
     
  20. Ray

    Ray The Chairman Defence Professionals Moderator

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    Clean image indeed.

    He also cleaned India from defending itself.

    it is not Damned if you do, damned if you don't..

    It is just that he is a DAMNED IDIOT.

    The Indian Defence, thanks to this prized goat, is all hot air and cannot translate its objective without making up for the lack of mlitary muscle with lives lost in sacrifice for that vacuum caused.
     
    Last edited: Aug 19, 2014
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  21. Pulkit

    Pulkit Satyameva Jayate "Truth Alone Triumphs" Senior Member

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    how come M777 has been already declared costly and the deal is scrapped but they are still dealing on the rafale deal... as of now we have no alternative of M777 but on the other hand in the case of RAFALE we can induct Tejas MK1 and wait for mk2?
     

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