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Publish Date : 18-Jan-2017

BAE Systems has secured a contract worth $542 million to supply 145 M777 ultra-lightweight howitzers to the Indian Army.

To be carried out by BAE Systems and its vendors across the United Kingdom, United States, and India, work on the contract will immediately start. Deliveries are slated to start in June this year.

India had inked a deal with the US to import the Howitzers for $750 million through a Foreign Military Sale with the US government in December 2016.

BAE Systems had said it will set up an Assembly, Integration & Testing (AIT) facility in India as an integral part of the offset offer to the Government of India.

The offset offer has committed to investing in, and the development of, several Indian defense suppliers, providing them with access to the BAE Systems group across Air, Land, Sea and Security programs. The completion of this procurement will allow BAE Systems to invest over $200 million in those Indian defense suppliers.

The Indian defense procurement agency had passed the proposal in June 2016. The deal had failed to not progress since 2012 due to cost issues and because the BAE was not able to come up with a proposal fully complaint to the offset requirements.

A source said in December last year, "Two guns will be delivered to the Army within six months from the signing of the LoA for preparing the range tables and calibration."

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