India on Wednesday signed the Letter of Agreement and Acceptance (LOA) with the US to purchase 145 M777 ultra - light artillery guns, through the foreign military sale (FMS) route.
The Cabinet on November 17 approved the much - awaited deal, which would add tremendous firepower to the Indian Army, especially against China in eastern front.
The air portable 155mm/39 calibre gun, with maximum range of 30 km, is manufactured by BAE Systems.
Welcoming the signing of the agreement, BAE system in a statement said: "The company anticipates signing a contract in the coming weeks with the US Department of Defense to supply these M777 Howitzers to the Indian Army. "
"We look forward to providing the Indian Army with the combat - proven M777, " said Joe Senftle, Vice President and General Manager for Weapon Systems at BAE Systems.
"Our plan to establish a domestic Assembly, Integration and Test facility further demonstrates our commitment to 'Make in India' and remains a firm part of our strategy to work with the Indian defense sector across Air, Land, Sea and Security. "
The $737 million contract has a 30 per cent offset clause worth around $200 million.
Out of 145 guns, BAE will deliver 25 guns and rest 120 will be assembled in India by Mahindra.