India has renewed its efforts to acquire 12 US-2i amphibious aircraft from Japan worth Rs 10,000 crore, The Economic Times reported on Saturday. The matter will reportedly be discussed by officials from both countries during Indian Prime Minister Narendra Modi’s visit to Tokyo on November 11-12, according to the report.
The possible deal will also be taken up by the Defence Acquisition Council – chaired by Union Defence Minister Manohar Parrikar – when it meets on Monday, according to The Financial Express. An official told the daily that India was yet to accept Japan’s offer because of the scope for “bringing down the cost of these machines”, due to a price escalation caused by fluctuating exchange rates. The official said the Japanese government was considering a “20% concession”.
If acquired, the ShinMaywa Industries-manufactured planes will be divided between the Indian Navy and the Coast Guard. While they are primarily used for search and rescue operations, the aircraft also be used to transport combat troops in the case of an emergency.
The two sides have been negotiating the details of the potential purchase for at least three years. However, the high costs involved has so far prevented a deal for being finalised. In 2014, Modi and his Japanese counterpart Shinzo Abe directed the Joint Working Group between the two countries to “accelerate progress in the discussions” for the acquisition.
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