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US defence giant Lockheed Martin and Tata Advanced Systems Limited (TASL) have signed an agreement for joint production of the F-16 Block 70 fighter jet in India. This could be aimed at bidding for the $12-billion fighter jet deal which the Ministry of Defence has undertaken.
Defence Minister Arun Jaitley had recently stated that the tender to procure nearly 200 fighter jets will be floated by the year-end. The deal is expected to see interest from other global majors, including Saab of Sweden with its Gripen E.
Lockheed Martin said in a press statement that the agreement with TASL is based on proven performance manufacturing airframe components for the C-130J airlifter and the S-92 helicopter.
Orlando Carvalho, Executive Vice-President of Lockheed Martin Aeronautics, said, “Our partnership significantly strengthens the F-16 ‘Make in India’ offer, creates and maintains numerous new job opportunities in India and the US, and brings the world’s most combat-proven multi-role fighter aircraft to India.”
The deal comes days ahead of Prime Minister Narendra Modi’s visit to the US on June 26. Commenting on the signing of the agreement, N Chandrasekaran, Tata Sons Chairman, said it “builds on the already established joint venture between Lockheed Martin and Tata and underscores the relationship and commitment between the two companies”.
Earlier, the US defence giant was reported to move the production of its F-16 combat jets to India since it was not getting more orders for jets from the Pentagon as the US is moving to fifth-generation F-35 Joint Strike fighters.
However, according to market analysts, moving the production of F-16 to India could make sense for Lockheed Martin only in case the Indian government agrees to order hundreds of these jets.
US President Donald Trump had also opposed any move by American companies to shift manufacturing facilities outside of the US.
In India, the Defence Ministry is yet to make its choice, although the procurement procedures have started with the IAF issuing a global Request for Information.
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