 "Narendra Modi with his Japanese counterpart Shinzo Abe")
Prime Minister Narendra Modi, who is scheduled to visit Japan on November 11 and 12, is expected to hold a discussion on taking forward the $1.65-billion US-2i amphibious search and rescue aircraft deal.
According to a report in The Financial Express, there was a meeting in the defence ministry on the issues related to the viability of acquiring the US-2i aircraft for the Indian Navy and Coast Guard.
The report, quoting sources, said there had been a series of meetings on this and Monday’s meeting was final discussion before putting it to Defence Acquisition Council for approval. Though India had not accepted Japan’s offer, there was a scope of bringing down the cost of the aircraft.
The report added the Japanese side was mulling waiving the royalty charges, which was around 10% and also waiving off the consumption charges of 10%, adding up to a huge 20% concession.
The discussion on the deal has been going on since 2011, but there has been little headway. Both New Delhi and Tokyo have been discussing and attempting to iron out all issues related to the purchase of ShinMaywa Industries’ US-2i amphibious aircraft and have had discussions with the Japanese government, too.
Modi will hold the annual summit meeting with his Japanese counterpart Shinzo Abe on November 11.
The Japanese have offered to manufacture parts for the aircraft in India by setting up a facility for maintenance, repair and overhaul (MRO) and re-exports. But there is still no clarity on the number of aircraft to be manufactured in India, according to sources.
