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ShareNew Delhi: India is expected to initiate the process for a major government-to-government deal in artillery guns with the United States during the visit of prime minister Manmohan Singh later this month.
If it goes through, it will break the jinx of Bofors that has held back artillery modernisation since the mid-1980s.
According to military sources, work is under way for a foreign military sales deal with the US for the purchase of ultra-light howitzer guns, worth over $1 billion (Rs5,000 crore). A military source said the proposed deal "could be taken forward" during Singh's visit to the US.
If it goes through this will be the first major artillery gun purchase by India since the Bofors scandal, over kickbacks in the purchase of the artillery guns from Sweden, erupted into a political controversy.
Though the proposal is being termed "serious" by sources, many are not willing to commit if it will go through. Singapore Technologies, which had led the race for the contract, has been blacklisted after its name cropped up in a Central Bureau of Investigation probe into alleged corruption by former Ordnance Factory Board chairman Sudipto Ghosh.
However, pleading innocence, the Singapore firm is carrying out intense lobbying at various levels to get back the contract. Army sources are not willing to write off the Singapore firm from the contract.
The army is preparing detailed notes for a deal for the much-needed ultra-light howitzers. The proposal is for outright purchase of M777 towed artillery guns that have shown their capabilities in Afghanistan. It is in service with the US Marine Corps and army, besides the Canadian military.
