ID :
186786
Mon, 06/06/2011 - 20:31
Auther :
Shortlink :
https://www.oananews.org//node/186786
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CCS clears proposal for buying 10 heavy lift planes from US
New Delhi, Jun 6 (PTI) The Cabinet Committee on Security
(CCS) on Monday cleared a proposal to buy from the US ten C-17
heavy lift military aircraft worth USD 4.1 billion, the
biggest-ever defence deal to be entered between the two
countries.
"The CCS meeting chaired by Prime Minister Manmohan Singh
cleared the proposal for purchase of the planes from the US
through the Foreign Military Sales (FMS) route," Defence
Ministry officials said here.
Under the deal, the US defence major Boeing, the
manufacturer of the aircraft, will have to invest 30 per cent
of the contract amount for setting up defence facilities in
India, they said.
As per the procurement procedure, offsets clause entails
that a vendor winning a defence deal worth over Rs 300 crore
has to reinvest at least 30 per cent of the deal amount in
Indian defence, homeland security or civilian aerospace
sectors.
The deal, which amounts to over Rs 18,000 crore, would be
the biggest-ever defence contract to be entered with the US.
Prior to this, the biggest deal with the US was worth USD
2.1 billion for procurement of eight P-8I maritime
surveillance and anti-submarine warfare aircraft from Boeing
through direct commercial sales in 2009.
Boeing, along with another US company Lockheed Martin,
had recently failed to qualify in a bid for procurement of 126
Medium Multi-Role Combat Aircraft (MMRCA) for the IAF, which
had upset the Americans. The MMRCAs are likely to cost India
over USD 11 billion.
Washington had, however, then said that strategic ties
with India would not be overshadowed by exclusion of the two
American companies from the Indian fighter contract and the
bilateral defence dialogue between the two nations would work
on enhancing cooperation in cutting edge technology.
India is planning to procure the aircraft for augmenting
its fleet, which now comprises Russian-made transport aircraft
Ilyushin-76 and Antonov-32.
After finalising the initial deal for 10 aircraft, the
IAF is also planning to place orders for additional six C-17s.
The C-17 will be the second American airlifter in the IAF
transport fleet, which recently inducted the C-130 J Super
Hercules.
The four-engine C-17 aircraft can lift two T-90 tanks and
artillery guns and are used for rapid strategic airlift of
troops and cargo to operating bases throughout the world. It
can also perform tactical airlift, medical evacuation and
airdrop missions.
The aircraft has the capacity to carry over 130 fully-
equipped combat ready troops.
However, the aircraft would come with some important
communication equipment in absence of the contentious
Communications Interoperability and Security Memorandum of
Agreement (CISMOA) with the US.
In the recent past, India had finalised defence deals
worth over USD eight billion, including the C-130J, C-17, P-8I
and Harpoon anti-ship missiles. Several more multi-billion
dollar deals are in the pipeline for being cleared in the near
future.
(CCS) on Monday cleared a proposal to buy from the US ten C-17
heavy lift military aircraft worth USD 4.1 billion, the
biggest-ever defence deal to be entered between the two
countries.
"The CCS meeting chaired by Prime Minister Manmohan Singh
cleared the proposal for purchase of the planes from the US
through the Foreign Military Sales (FMS) route," Defence
Ministry officials said here.
Under the deal, the US defence major Boeing, the
manufacturer of the aircraft, will have to invest 30 per cent
of the contract amount for setting up defence facilities in
India, they said.
As per the procurement procedure, offsets clause entails
that a vendor winning a defence deal worth over Rs 300 crore
has to reinvest at least 30 per cent of the deal amount in
Indian defence, homeland security or civilian aerospace
sectors.
The deal, which amounts to over Rs 18,000 crore, would be
the biggest-ever defence contract to be entered with the US.
Prior to this, the biggest deal with the US was worth USD
2.1 billion for procurement of eight P-8I maritime
surveillance and anti-submarine warfare aircraft from Boeing
through direct commercial sales in 2009.
Boeing, along with another US company Lockheed Martin,
had recently failed to qualify in a bid for procurement of 126
Medium Multi-Role Combat Aircraft (MMRCA) for the IAF, which
had upset the Americans. The MMRCAs are likely to cost India
over USD 11 billion.
Washington had, however, then said that strategic ties
with India would not be overshadowed by exclusion of the two
American companies from the Indian fighter contract and the
bilateral defence dialogue between the two nations would work
on enhancing cooperation in cutting edge technology.
India is planning to procure the aircraft for augmenting
its fleet, which now comprises Russian-made transport aircraft
Ilyushin-76 and Antonov-32.
After finalising the initial deal for 10 aircraft, the
IAF is also planning to place orders for additional six C-17s.
The C-17 will be the second American airlifter in the IAF
transport fleet, which recently inducted the C-130 J Super
Hercules.
The four-engine C-17 aircraft can lift two T-90 tanks and
artillery guns and are used for rapid strategic airlift of
troops and cargo to operating bases throughout the world. It
can also perform tactical airlift, medical evacuation and
airdrop missions.
The aircraft has the capacity to carry over 130 fully-
equipped combat ready troops.
However, the aircraft would come with some important
communication equipment in absence of the contentious
Communications Interoperability and Security Memorandum of
Agreement (CISMOA) with the US.
In the recent past, India had finalised defence deals
worth over USD eight billion, including the C-130J, C-17, P-8I
and Harpoon anti-ship missiles. Several more multi-billion
dollar deals are in the pipeline for being cleared in the near
future.
