India signs deal with US to buy 145 M777 artillery guns

The Dollar Business Bureau

India signed a Letter of Agreement and Acceptance (LOA) on Wednesday with the United States for purchasing 145 M777 ultra-light artillery guns, via foreign military sale (FMS) route.

The Union Cabinet has approved the much-anticipated deal on November 17 that would add enormous firepower in the Indian Army, specifically against China on the eastern front.

The air portable gun – 155 mm/39 calibre, has a maximum 30 km range and is manufactured by the British multinational company - BAE Systems.

Welcoming the inking of the agreement, BAE Systems said in a statement that in the coming weeks the company expects to sign the contract with the US Department of Defence to supply the M777 Howitzers to India.

Joe Senftle, Vice President and GM for Weapon Systems, BAE Systems said that the company is looking forward to provide the combat-proven M777 to the Indian Army.

“BAE Systems plans to set up a domestic Assembly, Integration and Test facility to further demonstrate its commitment to the 'Make in India' scheme and it remains a firm part of the company’s strategy to work with the defence sector of India across land, air, sea and security,” Senftle said.

The contract, worth $737 million, has an offset clause of 30% amounting to around $200 million.

Out of 145 artillery guns, the company will provide 25 guns while the remaining 120 will be assembled by Mahindra in India.