High Purchase Price of C-130 Jets Vis-a-Vis Canada
Six C-130J-30 aircraft have been purchased from the Government of United States of America (USG) through the Foreign Military Sales (FMS) route at a cost of US $ 962 million which includes the cost on account of training, role and support equipment, spares, warranty and US Government administrative charges. In the absence of official information regarding the coast of the Canadian procurement, it is not possible to make appropriate comparative cost analysis.
In accordance with the Defence Procurement Procedure, the Letter of Request (LOR) stipulated an offset obligation of not less than 30% of the estimated amount. The OEM has undertaken to fulfil the stipulated offset obligation.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri Rajeev Chandrasekhar in Rajya Sabha today.
DM/Raman