India and the United States have begun talks on the price and onboard equipment for the 10 Boeing C- 17 military transport aircraft that the Indian Air Force (IAF) wants.
According to reliable sources quoted by India Strategic defense magazine, the validation trials of the aircraft were complete and that one United States Air Force (USAF) C-17 which had come to India in this regard last month had met the IAF specifications. The aircraft was tested in short and high altitude runways.
As India is buying the aircraft from the US government under its Foreign Military Sales (FMS) program, the US Department of Defense (DOD) and USAF are leading the discussions from the supplier side and the Indian Ministry of Defense and the IAF are negotiating from the buyer side.
DOD has set the maximum price at $5.8 billion for the aircraft and various systems but the actual price would depend upon what equipment and onboard options the IAF finally selects.
The US government will issue a Letter of Acceptance (LOA) after these discussions are finalized, indicating the equipment, services, and lifecycle support and their costs. There would be a 3.8 per cent administrative fee that the US government now charges on all FMS deals. (This fee varies periodically between 2.5 to 5 per cent).
- economictimes.indiatimes.com
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