In what will be India’s biggest defence deal with the United States so far, at $4.1 billion, the Cabinet Committee on Security on Monday approved a proposal for the acquisition of 10 Boeing C-17 Globemaster III advanced airlifter aircraft for the Indian Air Force. The deal is now expected to be signed soon. It comes as major relief to the US,
which was unhappy after the recent elimination of American firms from the race to bag the contract for 126 combat fighters.
Boeing has said the “high-wing, four-engine, military-transport C-17 aircraft... can carry large equipment, supplies and troops directly to small airfields in harsh terrain anywhere in the world at day or night”. It also described the aircraft as a “massive, sturdy, long-haul aircraft (that) tackles distance, destination and heavy oversized payloads in unpredictable conditions”. It said “the C-17’s ability to fly long distances and land in remote airfields in rough landlocked regions make it a premier transporter for military, humanitarian and peacekeeping missions”.
In addition to the C-17 aircraft itself, the deal could include training for aircrew and maintenance personnel, training equipment, spare and repair parts, test equipment, ground support equipment, technical assistance, engineering services, unique modifications specific to the Indian Air Force, as well as logistics and technical support. India could also later exercise the option to acquire five to six more C-17 aircraft (in addition to these 10) as a follow-on order if so required.
The proposed deal could have cost India upto $5.7 billion but there were tough cost negotiations with the US which finally saw the deal at $4.1 billion.
As per India’s “offset policy” for any armament procurement valued at `300 crores or more, Boeing is expected to invest 30 per cent of the deal amount in India, which will be above $1 billion.
India’s previous deals with US companies include the $2.1 billion deal with Boeing for acquisition of P-8i maritime reconnaissance aircraft for Indian Navy in 2009 and the nearly $1 billion deal with Lockheed Martin for six C-130J Super Hercules military transport aircraft for the Air Force in 2008.