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http://www.thehindubusinessline.com...ns-aircraft-to-india-soon/article4350930.ece/
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 Forces requirement for its
prestigious aerobatic team. A 20-plane third
order would bring Indias Hawk fleet to 143,
making the country the worlds 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 Indias 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.
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 Forces requirement for its
prestigious aerobatic team. A 20-plane third
order would bring Indias Hawk fleet to 143,
making the country the worlds 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 Indias 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.
