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CCS nod for largest Indo-US defence deal

Jun 7,2011

NEW DELHI: Decks have been cleared for the largest Defence Indo-US deal as the Cabinet Committee on Security (CCS) on Monday gave approval for the acquisition of 10 heavy lift aircraft C-17 Globemaster III. The deal values around $4.1 billion.

The strategic airlifters will be the largest in the transport fleet of the IAF, which has been on a drive to modernise its transporters to augment capability to maintain supply chain of man and materials over long distance. The deal would also be a step forward in the direction of replacing its ageing Soviet-era fleet. “The CCS chaired by Prime Minister Manmohan Singh has given approval for the purchase of 10 very heavy transport aircraft. The value of the deal is $4.1 billion,” a Defence Ministry official said.

The aircraft will be procured through Foreign Military Sales route which entails a government to government contract. The CCS approval has come after a six months of the US President Barack Obama’s India visit last year. The deal is much awaited in the US political circles as it is expected to generate over 20,000 jobs in the country.

No decision has come on the acquisition of a follow on order for four more C-17 aircraft. The IAF transport fleet has been undergoing revamping to meet the force’s strategic requirements. Over 100 Soviet-origin An-32s with medium lift capability are undergoing upgrading in Ukraine. “The first two upgraded An-32 have already come. The aircraft upgrading will be completed by this financial year,” said an IAF official.