India Retains US$69 Million In Its Deal With US For Super Hercules Aircraft

India’s Ministry of defense has achieved a saving of $69 million in the deal with US to acquire six C-130J Super  Hercules transport aircraft.

“We saved $69 million (470 crore) due to the tendering process done by the American government for supplying the planes to us in the C-130J Super Hercules deal.” a senior Defence Ministry official was quoted as saying by Mail Today Tuesday.

At the end of 2013, the deal worth rupees 4,000 crore (US$592 million) was inked by India for the second batch of six Lockheed Martin's C-130J Super Hercules aircraft from the US.

The savings is because of the procedural steps involved in government to government deals between India and the US. According to the procedures, following the defense deals being finalized by India with the US for military hardware, the federal government issues tenders to their vendors for acquiring various set of equipment for the plating payments for future defence deals between India and US.

India recently signed a deal for the 145 Ultra Light Howitzers with the US for equipping its Army’s Corps of Artillery which has been deprived of a new gun for almost three decades. 

The IAF already has a fleet of six similar planes which are deployed at the Hindon air base here and the force uses it for carrying out special operations including landing on inhospitable air strips in the Ladakh area.

The first batch of six aircraft from the US was acquired at a cost of around Rs 5,500 crore (US$814.3 million).