18 February 2016

News Story: Mahindra, BAE To Produce Howitzers for Indian Army

M777 howitzer
By Vivek Raghuvanshi

NEW DELHI — BAE Systems UK has teamed up with India's Mahindra Group to produce 145 light howitzer guns being bought by the Indian Army on a government-to-government basis.

In 2015, the Indian government cleared a pending proposal to buy 145 of the M777A2 LW155 howitzers from the US subsidiary of BAE Systems for $700 million, but only after BAE committed to set up assembly, integration and test (AIT) facilities in India to boost domestic industry.

Though the proposal to buy the 145 howitzers has been pending since 2008, the government agreed to give the go-ahead to produce the guns in the Make in India category.

"BAE Systems looks forward to working with Mahindra in the coming weeks to finalize details of this AIT facility and to negotiate the terms of its contractual arrangement," a company press release said Wednesday.

Read the full story at DefenseNews