M777 howitzer project: BAE to select Indian partner in 2 months

NEW DELHI: BAE Systems, the world’s leading gun maker, will identify its main Make in India partner for the M777 ultra-light howitzer project within two months, officials said.

The project, being set up as part of the recently cleared $700-million, or about Rs 4,450-crore, deal to acquire 145 M777 howitzers for the Indian Army, will benefit as many as 40 small and medium enterprises in the country, they said.

The US firm also plans to shift the final production unit of the howitzer to India and that this new facility would be its hub for worldwide orders. A total of over $200 million investments are to be made by BAE in India as part of its offset obligations for the deal under the ‘Make in India’ programme.

It is learnt that BAE is in the final stages of selecting its major Indian partner that will help it set up an assembly, integration and testing facility here.

Among the Indian companies being considered as the sole partner for this facility are Tata, Mahindra, L&T, Punj Llyod, Vem Technologies and PSU Midhani. “We have received interest from a number of Indian companies,” said John Kelly, vice president, at BAE Systems Inc.