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India, US move ahead with M777 deal

Yes you are correct. There was a request letter sent by the GoI. The US government responded with a draft letter of Acceptance. This was accepted in the DAC and the monies cleared for the deal. Now, this would need a release of payment which was to be done now. It was mentioned that both the LoA and payment release will happen this year.

The M777 coming in is a given. The Bharat Forge gun has to go through trials. But, it will be bought too. They needed the army trial ground for the same and that has been provided now, is what I last heard. The Kalyani group, which own Bharat Forge, is quite massive and influential. Not to mention they are the best in India for metallurgy. So, I will not be surprised if you see both the M777 and the ultra light from Bharat Forge coming in.

Okay, so for your information, if LOA from USG is not accepted with the short time remaining in its extension, the M777 offer will be considered abandoned. To restart it may take years, as it will raise the price. However, Pakistan may just jump up and buy them Direct Commercial Contract, and India may continue forward with Kaylani group. I personally feel M777 deal is stalled again. However, lets see if Government of India signs the LOA. They only have a very limited time left till the deal expires.
 
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I guess the delay is more related to the delay in setting up the mountain strike corps. This equipment is supposed to be for that specific unit and since budget allocation for setting that unit has not been done yet, there seems to no hurry to start buying equipment for that unit.
Could be also a case of when cash is available to make the down payment. In Indian fiscal year, most of the tax inflow (direct from companies) and others flows in in the 4th quarter. Already for this year, we have seen extra cash outflow for Pay commission hike and OROP. So I guess any further movement, if any, could happen in December as cash payment (initial amount) for the deal can only be paid in or after the 4th quarter of the fiscal year (Jan-March 2017).
 
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LOA is expired. Was it signed?

This is the last update

"The Indian defense ministry’s Defense Acquisition Council (DAC) has approved the purchase of 145 units of the BAE Systems M777A2 LW155 Ultra Light Howitzer at a cost of USD 750 million, clearing the Letter of Offer and Acceptance (LOA) to the U.S. government."

From Stratpost
 
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This is the last update

"The Indian defense ministry’s Defense Acquisition Council (DAC) has approved the purchase of 145 units of the BAE Systems M777A2 LW155 Ultra Light Howitzer at a cost of USD 750 million, clearing the Letter of Offer and Acceptance (LOA) to the U.S. government."

From Stratpost

this is not the latest. Was the LOA signed? It expired last month and was on final extension.
 
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The project has lapsed once again since CCS didnt approve and LoA expired yesterday.
sir why you have such high interest in this deal? is m777 that potent system or do you just like to poke fun at india's procurement system like we all used to about rafale deal.
 
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sir why you have such high interest in this deal? is m777 that potent system or do you just like to poke fun at india's procurement system like we all used to about rafale deal.

This deal is significant in many ways. It will turn the tide on Artillery balance of power in the sub-continent. Hence the interest.

Poking fun at Indians is beneath me. Their procurement system is notorious worldwide but I have no first hand information on how they do business.
 
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This deal is significant in many ways. It will turn the tide on Artillery balance of power in the sub-continent. Hence the interest.

Poking fun at Indians is beneath me. Their procurement system is notorious worldwide but I have no first hand information on how they do business.
i do have some idea how much it can alter the artillery balance in hilly and mountainous terrain.what about plain areas sir how much effect this procurement will have on them.
 
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The Defence Acquisition Council (DAC) headed by Defence Minister Manohar Parrikar today cleared the proposals for acquiring 145 M777 155 mm ultra light howitzers from the US.

This is the first time that guns are being purchased for the Army since bofors in 1987. These are light howitzers which can be flown to the mountain areas and will be deployed along the mountainous lines bordering both Pakistan and China.

India will be buying the 155 mm M777 guns at a cost of about Rs 4500 crore. This is first major buy for the Mountain Strike Corps. Earlier gun-maker BAE systems had tied up with India's Mahindra for the deal.

The proposal had been in the pipeline for several years, despite being cleared more than thrice by the Defence Ministry under Parrikar as well as his UPA predecessor, AK Antony.

The Army has not procured a single howitzer ever since the Bofors guns were acquired from Switzerland in the 1980s.

The other important proposal that the DAC may consider is the acquisition of almost 5,000 combat net radio sets for tactical communication of Army troops.

The DAC is to consider if the radio sets should be procured under the Make in India scheme or to be bought from the Israeli firm Elbit, according to the Army proposal.

The Indian Air Force is also likely to put up its proposal to upgrade its unmanned aerial vehicles that would be enhanced to combat platforms under the top secret Project Cheetah.

IAF officials declined to comment on the top secret project, which is likely to cost Rs10,000 crore.

http://www.defencenews.in/article/M...7-Howitzers-worth-Rs-4500-crore-from-US-39061

http://indiatoday.intoday.in/story/manohar-parrikar-m777-howitzers-rs-4500-crore-us/1/791659.html
 
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The Defence Acquisition Council (DAC) headed by Defence Minister Manohar Parrikar today cleared the proposals for acquiring 145 M777 155 mm ultra light howitzers from the US.

This is the first time that guns are being purchased for the Army since bofors in 1987. These are light howitzers which can be flown to the mountain areas and will be deployed along the mountainous lines bordering both Pakistan and China.

India will be buying the 155 mm M777 guns at a cost of about Rs 4500 crore. This is first major buy for the Mountain Strike Corps. Earlier gun-maker BAE systems had tied up with India's Mahindra for the deal.

The proposal had been in the pipeline for several years, despite being cleared more than thrice by the Defence Ministry under Parrikar as well as his UPA predecessor, AK Antony.

The Army has not procured a single howitzer ever since the Bofors guns were acquired from Switzerland in the 1980s.

The other important proposal that the DAC may consider is the acquisition of almost 5,000 combat net radio sets for tactical communication of Army troops.

The DAC is to consider if the radio sets should be procured under the Make in India scheme or to be bought from the Israeli firm Elbit, according to the Army proposal.

The Indian Air Force is also likely to put up its proposal to upgrade its unmanned aerial vehicles that would be enhanced to combat platforms under the top secret Project Cheetah.

IAF officials declined to comment on the top secret project, which is likely to cost Rs10,000 crore.

http://www.defencenews.in/article/M...7-Howitzers-worth-Rs-4500-crore-from-US-39061

http://indiatoday.intoday.in/story/manohar-parrikar-m777-howitzers-rs-4500-crore-us/1/791659.html

This is old news. Please look at your updated news.
 
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US is certainly moving ahead. India is dragging her feet.
 
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