BAE announces Mahindra as partner for the M777 ultra-light howitzers deal

NEW DELHI: Mahindra has been announced as the Indian partner for the setting up of an assembly, integration and testing (AIT) facility for the M777 ultra-light howitzers that are being procured by India under a direct government to government deal with the US.

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BAE Systems, which is the original manufacturer of the howitzers, has announced that it will work with Mahindra for the Make in India project, with details to be finalised over the coming weeks. As ET first reported on Monday, Washington has presented a formal Letter of Acceptance (LOA) to New Delhi, the final step in the government deal and has selected its Indian partner.

The M777 purchase – an estimated $ 700 million for 145 howitzers – will be the first new artillery gun to be purchased by India since the last of the Bofors were delivered in the late 1980s. Another project for purchasing the K9 `Vajra’ mobile artillery gun is also progressing and is expected to be closed by the defence ministry in the coming weeks. “BAE Systems is pleased to partner with Mahindra on our offer to develop an Assembly, Integration and Test facility in India. The facility is a fundamental part of the M777 production line.

A domestic Assembly, Integration and Test facility will enable the Indian Army to access maintenance, spares and support for the M777 locally,” Joe Senftle, Vice President and General Manager, Weapon Systems, BAE Systems said. As many as 40 Indian MSMEs are expected to gain from the project that entails offsets worth over $200 million.