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September 18, 2015

India, US move ahead with M777 deal


India and the US are jointly drafting a letter of acceptance (LoA) to fast-track the long-delayed sale of 145 BAE Systems M777 155 mm/39 calibre lightweight howitzers for the Indian Army via the Foreign Military Sales (FMS) route.
Official sources told IHS Jane's that the LoA was in the process of being finalised following broad agreement on its content between India's Ministry of Defence (MoD) and the Pentagon.
Other than the upwardly revised tender price of around USD700 million, the LoA includes delivery schedules, guarantees, and after-sales technical, materiel, and spares support.
Industry sources said the MoD had also instructed BAE Systems to submit by the end of October its offset agreements with local companies, which are valued at 30% of the overall contract value and estimated to be worth around USD200 million.

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