Business Other News 18 Feb 2016 BAE Systems picks Ma ...

BAE Systems picks Mahindra for guns

DECCAN CHRONICLE.
Published Feb 18, 2016, 1:39 am IST
Updated Feb 18, 2016, 1:39 am IST
The deal is to supply 145 M777 howitzers to Indian Army.
The guns will form the backbone of the Mountain Strike Corps.
 The guns will form the backbone of the Mountain Strike Corps.

New Delhi: Leading artillery gun-maker BAE Systems on Wednesday announced the selection of Mahindra as its India partner for the nearly $700 million deal for the supply of 145 M777 howitzers to the Indian army, the first new artillery guns after the Bofors scandal.

The gun, with a strike range of 25 km, will form the backbone of the Mountain Strike Corps, being raised by the government for the mountainous borders with China. It is a 155mm titanium-based Ultra-Light Howitzer (ULH) and can be airlifted by helicopters with ease to distant mountainous military posts.

 

The gun deal would be through foreign military sales (FMS) but the “spares, maintenance and ammunition will be operated through Indian systems”, defence sources were quoted as saying by news agencies.

“BAE Systems has down-selected Mahindra as its business partner for the proposed in-country assembly, integration & test (AIT) facility for the M777 Ultra Lightweight Howitzer,” BAE, a British company with a subsidiary in the US, was quoted as saying in a statement.

India and the United States are in discussion for supply of 145 M777A2 LW155 howitzers for the Indian Army, it said. “BAE Systems looks forward to working with Mahindra in the coming weeks to finalise details of this AIT facility and to negotiate the terms of its contractual arrangement,” the company said.

 

Last year, BAE developed and submitted a US government- supported proposal offering a higher degree of indigenisation of the M777 weapon system. The highlight of this is the commitment to establish AIT capabilities in India in partnership with an Indian firm.

“The selection follows a detailed assessment of Mahindra’s ability to fulfill the requirements and provide the best value to the M777 India programme, and in the future, grow its capability as a strategic partner for BAE Systems in India,” it said.

Joe Senftle, vice-president and general manager, weapon systems, BAE Systems said that as a founding partner of defence manufacturing in India, BAE Systems “is pleased to partner with Mahindra”. The facility is a fundamental part of the M777 production line.

 

After the Bofors controversy in 1986, no new gun has been procured by the army for its artillery. A domestic assembly, integration and test facility will enable the Indian Army to access maintenance, spares and support for the M777 locally.
Commenting on this, Mr S.P. Shukla, group president, Mahindra Defence and Aerospace, said, “Mahindra M777 facility will also ensure that the lifecycle support is available locally thereby enhancing the operational availability of the guns.”

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