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.