Boeing, Lockheed hail “end-use monitoring” agreement
23 Jul 2009
New Delhi: US defence industry contractors, Boeing and Lockheed Martin, currently vying with each other for an $11 billion, Indian Air Force multi-role, 126-fighter contract, have hailed a bilateral ''end-use monitoring" accord between the United States and India which allows monitoring of equipment sold by American companies. The agreement eases restrictions on sale of military goods to India, and facilitates greater defence-related transactions between both nations.
Both companies have already secured their first contracts in India, with Lockheed being asked to supply at least six C-130J Super Hercules transporters for the Indian Air Force in a billion-dollar deal, and the Indian Navy becoming the international launch customer for the P-8I long-range maritime reconnaissance aircraft being developed by Boeing. This deal is worth at least $2 billion to Boeing.
With both transactions India retains the right to exercise options for lacing further orders.
Early this week, US secretary of state, Hillary Clinton, and her Indian counterpart SM Krishna agreed on an "end-use monitoring" arrangement aimed at providing safeguards for the sale of sophisticated US weaponry to India.
According to Clinton, the deal, which also provides for co-operation in providing nuclear technology, would pave the way for billions of dollars in exports of military hardware and civilian reactors to India.
Vivek Lal, India head of Boeing Defence Integrated, praised the accord as a "cornerstone of the increasing trust forged by both countries."
