India-US Howitzer Deal Likely to Be Delayed Once Again

[ashok321]

http://sputniknews.com/military/20160825/1044644146/india-us-dhowitzer-deal.html

India plans to deploy the M777A2 howitzers along the Indo-China border.

Read more: http://sputniknews.com/military/20160825/1044644146/india-us-dhowitzer-deal.html


The signing of a deal between India and the US on the purchase of M777A2 lightweight howitzers for the Indian Army is likely to be stalled once again. Sources from India’s Defense Ministry told Sputnik that the government is planning to seek an extension of the deadline for the deal that was to be signed before September 5 if India was to purchase the guns at the original price quoted by BAE. According to sources, BAE has demanded a 10 percent increase in price if India chooses to sign the deal after the September 5 deadline. This is the second time India would be seeking a deadline extension. The original deadline for signing the deal was August 5, which the US had extended by one month following a request made by India. The Defense Acquisition Council, the apex decision making body of India’s Defense Ministry, had given its approval to buy 145 M777A2 howitzers for the Indian Army under the Foreign Military Sales route.


Informing the Parliament a month ago about the status of the deal, Manohar Parrikar, India’s Minister of Defense, had said, “Acceptance of Necessity (AoN) has been accorded for the procurement of 155mm / 39 Calibre Ultra-Light Howitzers from USA under US Foreign Military Sales route at an approximate cost of USD 737 million.”


India had made up its mind to purchase the US-made howitzers in the year 2012. BAE had quoted USD 694 million for the deal. However, the case had not progressed due to cost issues and because the BAE had not been able to come up with a proposal fully complaint to the offset requirements. However, earlier this year BAE system announced that 30% of total deal’s value would be discharged as offset for which the company selected Mahindra Defence & Aerospace as an Indian equipment manufacturer. Out of a total of 145 howitzers, 25 will be purchased in ready to use form while the other 120 will be assembled in India. However, the deal has hit another roadblock as India’s Defense Ministry, which will be required to pay USD 110 million at the time of signing, is cash-strapped at the moment because of the numerous deals signed in the recent past. India has signed a total of 108 contracts with a value of USD 16.946 billion in the last two years.

 

[[Bregs]]

However, the deal has hit another roadblock as India’s Defense Ministry, which will be required to pay USD 110 million at the time of signing, is cash-strapped at the moment because of the numerous deals signed in the recent past. India has signed a total of 108 contracts with a value of USD 16.946 billion in the last two years.

hmm msigned and money paid for none, what type of govt or DM is this whoo knew when they came to power following projects are due for buy in advance stages and still no money even after 2 years? not even 100m$ and now asking for further freeze on process thus making them look like inept at handling such issues. inefficiency and loose mouth is all they doing

 

[Skull and Bones]

I'm seriously considering Parrikar as a clog in the defense ministry.

 

[[Bregs]]

I'm seriously considering Parrikar as a clog in the defense ministry.

Irony is highly educated technocrat from IIT he is, expectations were higher from him

 

[NKVD]

I'm seriously considering Parrikar as a clog in the defense ministry.

Why ??

Guy Signed 17 billions $ worth of Deal in this year alone

 

[Indrajit]

Why ??

Guy Signed 17 billions $ worth of Deal in this year alone

...Because everyone wonders why he isn't a magician......why he can't produce the money required for whatever posters here want in their wish list from his backside on demand......

Cash strapped you say? What the heck...? Useless Defence Minister......

 

[Skull and Bones]

Why ??

Guy Signed 17 billions $ worth of Deal in this year alone

Yes, but at the same time, he's stagnating the much required light howitzer deal, and at the same time killing the MMRCA tender, putting the life of pilots in danger by flying our antiques.

Irony is highly educated technocrat from IIT he is, expectations were higher from him

Put him in the Mig-21s, and he'll put an order of 200 Rafales the very next day.

 

[NKVD]

However, the deal has hit another roadblock as India’s Defense Ministry, which will be required to pay USD 110 million at the time of signing, is cash-strapped at the moment because of the numerous deals signed in the recent past. India has signed a total of 108 contracts with a value of USD 16.946 billion in the last two years.

hmm msigned and money paid for none, what type of govt or DM is this whoo knew when they came to power following projects are due for buy in advance stages and still no money even after 2 years? not even 100m$ and now asking for further freeze on process thus making them look like inept at handling such issues. inefficiency and loose mouth is all they doing

You forget about other deals Which are in Cleared
India's MoD clears acquisitions worth USD4.62 billion

http://www.janes.com/article/63152/india-s-mod-clears-acquisitions-worth-usd4-62-billion

 

[punit]

Why ??

Guy Signed 17 billions $ worth of Deal in this year alone

can u provide a breakdown of such deals ?

 

[Indrajit]

Yes, but at the same time, he's stagnating the much required light howitzer deal, and at the same time killing the MMRCA tender, putting the life of pilots in danger by flying our antiques.

Money my dear fellow....Parrikar does not have it....Not like he is sitting on top of a heap of treasure...

 

[Skull and Bones]

Money my dear fellow....Parrikar does not have it....Not like he is sitting on top a heap of treasure...

I understand that, but given that he has already cleared deals of exceeding 15 billion last year, and this tender of light howitzers has been stagnating since the congress era. Can you list the deals that has been cleared last year, and the respective valuations of the deal. Then we can judge them based on its priority.

 

[[Bregs]]

You forget about other deals Which are in Cleared
India's MoD clears acquisitions worth USD4.62 billion

http://www.janes.com/article/63152/india-s-mod-clears-acquisitions-worth-usd4-62-billion

well bro what i am saying is they are swift in clearing through DAC what after that no money from finance ministry, no synergy between defence n finance minstrelsies ? has a single deal reached conclusion in last 2 yrs ? in which payment has been made

 

[NKVD]

Yes, but at the same time, he's stagnating the much required light howitzer deal, and at the same time killing the MMRCA tender, putting the life of pilots in danger by flying our antiques.

MoD just cleared India's Ministry of Defence (MoD) approved procurements worth INR310 billion (USD4.62 billion)
for Pinaka multibarrel rocket launchers, the 100 K-9 Vajra (Thunderbolt), which is a Larsen & Toubro-modified version of the Hanwha Techwin 155 mm/52-calibre K9 Thunder self-propelled howitzer, and 400+ upgraded Dhanush FH-77B 155 mm/45-calibre towed howitzers for the Indian Army (IA).

http://www.janes.com/article/63152/india-s-mod-clears-acquisitions-worth-usd4-62-billionpache

We Should also appreciate His actions

Apache/Chinook Cleared this years
Modi israel visit will clear Spike Deal and MR SaM

well bro what i am saying is they are swift in clearing through DAC what after that no money from finance ministry, no synergy between defence n finance minstrelsies ? has a single deal reached conclusion in last 2 yrs ? in which payment has been made

Apache /Chinook forget that It as for Clearing funds These Deals Which cleared ant are Scheduled for Deliveries

India's Ministry of Defence (MoD) approved procurements worth INR310 billion (USD4.62 billion) Do you Know What it Means Funds cleared Now


DM MP Also cleared back Log of UPA Which they Left Like Augusta And Rafale

 

[Indrajit]

I understand that, but given that he has already cleared deals of exceeding 15 billion last year, and this tender of light howitzers has been stagnating since the congress era. Can you list the deals that has been cleared last year, and the respective valuations of the deal. Then we can judge them based on its priority.

What does clearing $15 billion mean? What time period would that be spread out? I'm sure some of the stuff that gets "cleared" is also of utmost urgency but we are quibbling now. The point is that there is no money, unlike some of the other deals cleared, this one would have required an advance immediately. Hence, no go. Till they find some money for it. Which they will. Soon.. we can hope.

 

[NKVD]

What does clearing $15 billion mean? What time period would that be spread out? I'm sure some of the stuff that gets "cleared" is also of utmost urgency but we are quibbling now. The point is that there is no money, unlike some of the other deals cleared, this one would have required an advance immediately. Hence, no go. Till they find some money for it. Which they will. Soon.. we can hope.

If any body is blind Should read MOD 2016 report See deals which are concluded

can u provide a breakdown of such deals ?

Any thing more Chump