Agreement between India & U.S.

New Delhi, Nov 30 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.