Friday, July 13, 2018

$1.65-billion Aircraft deal: India to push for G2G pact with Japan

The long-pending deal involving purchase of 12 ShinMaywa US-2i Amphibious and Rescue (SAR) aircraft for $1.65 billion is back on track with New Delhi expected to push for government to government deal (G2G) in an effort to close the discussions before the India-Japan annual summit to be held in September. Talking to FE on condition of anonymity, a senior officer said: “The discussions have been going on for this aircraft for several years; there has not been much of an action on the deal so far. Recognising the advantage of selling to India, the two governments are willing to negotiate much lower price for these machines and through G2G route.”

The ministry of defence (MoD) has shown a preference for government-to-government (G2G) deals instead of direct commercial negotiations with companies producing armaments over the last couple of years. Some of the major G2G deals include procurement from Russia, US and France.

Sharing his view about the G2G route for defence procurements, an industry source said: “The inter-governmental agreement (IGA) between two governments, besides maintaining transparency, it also ensures that there are no unnecessary delays in closing deals.”
11/07/18 Huma Siddiqui/Financial Express