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Indian MoD says M777 buy in doubt over high cost, offset requirements

13 July 2014

The Indian Army's procurement of 145 BAE Systems M777 155 mm ultra-light howitzers has been deferred yet again due to their high cost and reportedly unsatisfactory defrayment of the contract's mandatory 30% offset obligation.

"The case for procurement of the guns through the US government has not progressed due to cost issues and because the vendor has not been able to come up with a proposal fully compliant to the offset requirements," Defence Minister Arun Jaitley told the Indian parliament on 11 July. He was responding to a question by an opposition Member of Parliament on the status of the M777 procurement.



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