BAE Systems has down-selected Mahindra Defence & Aerospace as its business partner for the proposed in-country Assembly, Integration & Test (AIT) facility for the M777 Ultra Lightweight Howitzer. India and the United States are in discussions for a Foreign Military Sale (FMS) of 145 M777A2 LW155 howitzers for the Indian Army. The two companies will finalise details of this AIT facility and negotiate the terms of its contractual arrangement in the coming weeks. The deal is estimated to be in the region of US$ 700 million (Rs 4,421 crore).

In 2015, BAE Systems developed and submitted a US government-supported proposal offering a higher degree of indigenisation on the M777 weapon system. The highlight of this is the commitment to establish AIT capabilities in India in partnership with a domestic Indian company.

The selection follows a detailed assessment of Mahindra’s ability to fulfil the requirements and provide the best value to the M777 India programme, and in the future, grow its capability as a strategic partner for BAE Systems in India.

Dr. Joe Senftle, vice-president & general manager, Weapon Systems, BAE Systems Inc, said: “As a founding partner of defence manufacturing in India, BAE Systems is pleased to partner with Mahindra on our offer to develop an Assembly, Integration and Test facility in India. The facility is a fundamental part of the M777 production line.  A domestic Assembly, Integration and Test facility will enable the Indian Army to access maintenance, spares and support for the M777 locally. We will continue to support the two governments to progress to contract agreement so that we may begin the process of ‘Make in India’ for M777.”

“Mahindra and BAE Systems share the same values and common vision towards ‘Make in India’. BAE Systems is one of the largest defence companies globally and we could not have a better partner. M777 will give our defence forces a much-needed operational advantage and an access to state-of-the-art technology. The Mahindra M777 facility will also ensure that the lifecycle support is available locally thereby enhancing operational availability of the guns. We look forward to making a major contribution to our defence forces and economy of India,” said SP Shukla, Group president, Mahindra Defence & Aerospace, Mahindra Group.