The estimated value of the aircraft along with associated ground support and ground handling equipment is 962,454,677 dollars (nearly Rs 3850 crore), defence minister A K Antony informed the Rajya Sabha.

Though the Cabinet Committee on Security, headed by the Prime Minister Dr Manmohan Singh, took the decision last month, nobody in the government had confirmed it.

Plum deal
Mr Antony’s statement in the Rajya Sabha is the first official acknowledgement of India’s first big-ticket defence contract with the USA, which has been trying to enter the lucrative Indian defence market for the last few years.

Lockheed Martin is one of the major contenders in the Indian tender to buy 126 medium range fighter aircraft at a cost of Rs 42,000 crore.  The transport aircraft deal is the India’s biggest defence contract with the USA as the previous deal to purchase a landing platform dock INS Jalashva (formerly USS Trenton) for the navy was priced at roughly Rs 218 crore.

The aircraft — likely to be used mostly in disaster relief operations — will be delivered to the IAF in a phased manner from 2011.

India has signed a letter of offer and acceptance with the USA for procurement of weapons and equipment for the Special Forces, the minister said.