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India's C-17 dilema; U.S. uncertain on the future for the transport plane program

sudhir007

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8ak - Indian Defence News

28 May 2010 8ak: CNN reports that U.S. Defence Secretary Robert Gates said that he would ask Obama to veto any defence bill that included further purchase of Boeing's C-17 Globemaster transport planes for the U.S.. The matter was further complicated by workers organising a 2 week strike at the C-17 plant in California fueling a Wall Street Journal report that since the orders had dwindled to just 10 planes a year that the program may be shut down. Gates (and Obama) have argued that the U.S. which already has ~300 transport planes does not need any more but it seems that senators wanting to keep the jobs in their constituency are pushing to keep the purchases going. Reuters and many others contradicted the WSJ arguing that the program would continue.

This puts India in a tough spot since it has formally expressed interest in purchasing 10 of the C-17 aircraft, which would keep the plant going for another year to 2012. Here is the U.S. Defence Security Cooperation Agency notifying the U.S. congress of India's interest in the program. While Boeing does not reveal the cost of the aircraft, it was expected to be a US$2.2 billion deal with India (US$200 million per plane as reported by wikipedia). So people were a bit taken aback when the deal was announced to be pegged at US$5.8 billion. Though the difference was explained as price for support and additional equipment, the lack of media coverage or discussion on the change in expected purchase price in India has surprised others. One good article on the effect to India of a possible closure of the line here.

A good article from Ajai Shukla detailing the faltering U.S. - India relationship on the various agreements that the U.S. needs India to sign or the new American aircraft being delivered to India will come without critical technology and equipment. As Obama in his latest National Security Strategy pledges for a more important role for India, Americans 8ak spoke to gave their point of view on the issue. By making India the first foreign navy to get Boeing's P-8I surveillance aircraft and many other such deals being offered to India, the U.S. is showing that it is ready to give India access to advanced technologies but along with this access comes a responsibility. Hence the U.S. has with their decades of experience in international weapon sales, come up with legislation applicable to all its partners that aims to prevent the misuse/re-direction of their weapons and technology. Also a major focus of the agreements is to ensure commonality in communication platforms between the two armed forces which is essential in case of joint operations not only in the Indian region but also other parts of the world where India may need to extend or protect its national interests.
 
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