Monday, June 06, 2011

India to buy C-17 heavy-lift transport aircraft from U.S.

C-17 Aircraft
India on Monday decided to purchase 10 C-17 Globemaster III heavy-lift transport aircraft from the U.S. for the Indian Air Force. The deal under the Foreign Military Sales (Government-to-Government) is estimated to cost Rs. 18,000 crore (approximately $4.1 billion).

The decision was taken at a meeting of the Cabinet Committee on Security under the chairmanship of Prime Minister Manmohan Singh, Defence Ministry officials said.

The contract, when signed would become the highest single value military contract that New Delhi would enter into with the U.S. and includes an offset obligation of around Rs. 4,500 crore ($ 1 billion). Under the clause, the U.S. company would have to source 30 per cent value of the order from India.

Work on the deal began last April during U.S. President Barack Obama's visit to India when it was announced that New Delhi had agreed to buy these aircraft.

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