Inter-Governmental deal signed between India and US:
After years of negotiations, India signed a government-to-government deal with the U.S. for 145 M-777 Ultra-Light Howitzers worth $750 million under the Foreign Military Sales programme.
This is the first major artillery deal signed by India after the Bofors scandal in the late 1980s.
The manufacturer, BAE Systems, will conclude an offset agreement estimated at about $200 million. Twenty-five guns will be imported and the remaining 120 assembled in India. BAE Systems has already selected the Mahindra group as the local offset partner.
All about Bofors Scandal:
The Bofors scandal was a major political scandal that occurred between Sweden and India during the 1980s and 1990s, initiated by Indian National Congress politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Swedish and Indian governments who were accused of receiving kickbacks from Bofors AB for winning a bid to supply India's 155 mm field howitzer.
The scandal relates to illegal kickbacks paid in a US$1.4 billion deal between the Swedish arms manufacturer Bofors with the government of India for the sale of 410 field howitzer guns, and a supply contract almost twice that amount.