BAE Systems to sell more howitzer guns, aircraft to India soon

[Defcon 1]

Mumbai, Jan. 26:

Almost two years after deciding to buy light howitzer guns from the US subsidiary of BAE Land Systems, the Indian Defence Ministry has initiated talks with the US Government to procure M777 light howitzers. The deal is likely to be inked before the end of March.

Under the contract, worth $700 million, the UK-headquartered BAE Systems is to deliver the guns as fully built units.

Speaking to Business Line on the condition of anonymity, an official said, this would be "a direct G2G deal (Government to Government) between India and the US and will be facilitated under the US Government's foreign military sales route."

A rapidly growing Indian economy, defence preparedness challenges and opening up of defence production to the private sector, have given a major fillip to the defence sector.

The US Government had sent two units of the M777 to India for trias last year. The M777 howitzer is a 39-caliber towed artillery gun and weighs 4.2 tonnes. The official added that BAE Systems has supplied the M777 to Canada and Australia, besides the US.

India is a key international market for BAE Systems. It has been here for 60 years and has an office in New Delhi.

The company has two joint ventures in the country. One is with Mahindra and Mahindra for land systems. On January 23, M&M and BAE Systems announced a strategic review of their joint venture. The other is with Baehal, that undertakes software engineering sevices for companies in the defence space.

In 2004, India inked a contract to buy 66 Hawk Advance Jet Trainers worth $1.63 billion from BAE Systems for the Indian Air Force. The deal included options for another 40 aircraft. The second batch is being license-built by Hindustan Aeronautics Limited (HAL) in Bengaluru. The overall project cost is estimated at Rs 16,000 crore.

"In 2004, the first batch of 66 Hawks was contracted, comprising some aircraft in fly-away condition and some built under licence by HAL. In 2010, it was the second batch with 57 aircraft. With a total of 123 Hawks purchased by India as of now, BAE has received an RSP (request for proposal) for 20 more aircraft that could potentially make up the third batch," said the official.

The aircraft, to be built by HAL in Bengaluru, will fulfill the Indian Air Force's requirement for its prestigious aerobatic team. A 20-plane third order would bring India's Hawk fleet to 143, making the country the world's third largest Hawk operator behind the US Navy and Britain.

Given BAE's partnership with HAL, BAE is to "assist, enable and support the production line of the Hawk aircraft by HAL. The Hawk programme is progressing well. HAL is now manufacturing the aircraft," said the official.

With India's defence industry set to become a hub centre for defence business in the Asia region, the potential addition to the Indian fleet, one of the largest fleets of Hawk anywhere in the world, would take the number of Hawk aircraft ordered worldwide to over 1,000. The UK Royal Air Force aerobatics team Red Arrows has used the BAE Systems Hawk since 1979.

Business Line : Companies News : BAE Systems to sell more howitzer guns, aircraft to India soon

 

[sorcerer]

Purchase of Artillery Guns from BAE Systems INC

The case for procurement of artillery guns through Foreign Military Sales (FMS) route from US Government has not progressed due to cost issues and the vendor's (M/s BAE System) proposal not being fully compliant to the offset requirements. All capital procurements are carried out as per the Defence Procurement Procedure (DPP) which contains stringent provisions aimed at ensuring the highest degree of probity, public accountability and transparency.

This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Salim Ansariin Rajya Sabha today.

DM/HH/NM

Release ID :115768

 

[sorcerer]

Kalyani Group Readies M777 Howitzer Equivalent Option At Much Lesser Price

The most worrying operational void of field artillery guns to support the Indian Army in battle is finally being addressed. As India gears up to import the M777 Howitzers or the Ultra-Light Howitzers (ULHs) produced by the US based BAE Systems under the reported $750 million deal, a strong price competition is brewing back home–with the Kalyani group led by Baba Kalyani all set to offer similar ULHs at a significantly lower price than the imported price of a ULH.

According to sources, a high level review meeting of India’s artillery gun projects was held early this week along with moving ahead with the plan to Purchase 145 M777 Ultra-Light Howitzers produced by BAE Systems under the ‘Make In India’ program.

Sources said the review of high budget artillery projects was carried out in the presence of Defence Minister Manohar Parrikar. “All big artillery projects were discussed along with the purchase of M777 howitzers or ULH to modernise and enhanced the capability of Indian Armed forces,” sources said.

Back home, the Kalyani group had recently at the DefExpo 2016 exhibited the first prototype system–the Bharat Ultra-Light Howitzer that couldpose direct competition against the M777 Howitzers, made out of Titanium.
Bharat Ultra-Light Howitzer has been developed using light weight exotic materials like Titanium and Aluminium based alloys. The company also has a system ready for testing before the end of this year.

Asked to comment, Parrikar told this website that all indigenous manufacturers who offer such price advantage and have competitive products to offer will be spoken to by him.

“The purchase of M777 howitzers is a matter of time and negotiations in this regard are going on….the matter was also discussed between Parrikar and the visiting US defence secretary, Ashton Carter on April 12,” sources said.

Asked to comment, a senior official said, “Talks to import 145 M777 is on since 2012 with the US. Discussions were revived last year with the inclusion of the Make in India bit…we have progressed on the price front as the manufacturer has been seeking a hike on the initial price quoted of 2012.”

It has been reported that the price quoted by the US in 2012 was $694 million and BAE – the manufacturer has been seeking 10% hike on the four-year-old price. Reports have pegged the deal for these 145 ultra-light howitzers at around $750 million.

BAE Systems has already announced a tie up with Mahindra as its business partner for its proposed in-country assembly, integration and test (AIT) facility for the M777 Howitzer. The gun will come with laser inertial artillery pointing systems (LINAPS), maintenance, personnel training and training equipment, technical assistance, engineering and logistics support services.

However, with the passage of the finance bill 2016 in the Lok Sabha on March 5, the clause on re-imposing the customs duty of 28.7% stands ratified and would turn the $750 million deal somewhat costlier (although the exchequer will stand to gain from this customs duty).
Whether the proposed $750 million deal will progress as planned or face delays in the aftermath of the ongoing controversy surrounding the purchase of VVIP helicopters from AgustaWestlands by the erstwhile UPA government, remains to be seen
.
The M777 Ultra Light Howitzers

M777 is a 155mm 39 caliber towed gun which, through proven technology and the innovative use of titanium and aluminum alloys, meets the requirement for rapidly deployable and accurate artillery fire support.
· M777 is the world’s first 155mm Howitzer weighing less than 10000 lbs (4218 kg)

· Highly mobile on land, at sea and in the air, the M777 has increased survivability through:
· Unsurpassed tactical & strategic mobility, Low thermal & radar signature, Rapid emplacement / displacement, Low silhouette
Source>>