India signs deal with US to buy 10 C-17 aircraft

US defence major will invest 30% of the contract amount for setting up defence facilities in India.

New Delhi: India has signed its biggest
defence deal with the US to procure ten C-17 heavy-lift
aircraft for USD 4.1 billion under which American defence
major Boeing will set up test facilities for hi-tech
aeronautics engines for the DRDO.

The project to procure the ten strategic heavy-lift
aircraft was cleared by the Cabinet Committee on Security last
week through the Foreign Military Sales route.

"India yesterday signed the letter for offer and
acceptance with the US for 10 C-17s and associated equipment
at a cost of USD 4.1 billion and the aircraft delivery would
be done in 2013 and 2014," Defence Ministry officials said

Commenting on the development, Boeing`s India head
Dinesh Keskar said, "With its strategic capabilities, the C-17
fulfills India`s needs for military and humanitarian airlift.

The important transaction reaffirms our close relationship of
several decades with India and also highlights our commitment
to the strategic partnership between the two countries."

As per the agreement, the US defence major will invest
30 per cent of the contract amount for setting up defence
facilities in India, officials said.

The procurement involves offsets clause, under which a
vendor bagging a defence deal worth over Rs 300 crore has to
reinvest at least 30 percent of the deal amount in Indian
defence, homeland security or civilian aerospace sectors.

Under the offsets, Boeing will establish a High
Altitude Engine Test Facility at DRDO, which will allow the
research organisation to test engines indigenously, officials


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