CCS Cleared a Proposal to Buy C-17 Military Aircraft from USA

The Cabinet Committee on Security  of India on 6 June 2011 cleared a proposal to buy ten C-17 heavy lift military aircraft from the USA. It is considered the biggest defence deal ever entered between the two countries. The deal is worth of 4.1 billion US dollars. Under the deal, the US defence Company Boeing, will invest 30 percent of the contract amount for setting up defence facilities in India.

As per the procurement procedure, offsets clause entails that a vendor winning a defence deal worth over Rs 300 crore has to reinvest at least 30 per cent of the deal amount in Indian defence, homeland security or civilian aerospace sectors. The deal, which amounts to over Rs 18,000 crore, would be the biggest-ever defence contract to be entered with the U.S.

Before this, the biggest deal was worth 2.1 billion dollars for procurement of eight P-8I maritime surveillance and anti-submarine warfare aircraft from Boeing in 2009. India is planning to procure the aircraft, which includes Russian-made transport aircraft Ilyushin-76 and Antonov-32.

The IAF (Indian Air Force) has also planned to place orders for additional six C-17s. The C17 will be the second American airlifter in the IAF transport fleet, which inducted the C130 J Super Hercules earlier.

The C17 aircraft can lift two T90 tanks and artillery guns and it can be also used for airlift of troops and cargo to operating bases anywhere in the world. It can also perform tactical airlift, airdrop missions and medical evacuation. The C 17 aircraft has the capacity to carry over 130 fully-equipped troops.