The acquisition of ten Boeing C-17 Globemaster III strategic heavy lift transporters by the Indian Air Force, which was one the cornerstone deals during the recent visit of US President Barack Obama to India, has hit a price hurdle.
The Indian Express newspaper is reporting that the Indian Air Force had estimated the 10 aircraft deal to be around $3 billion based on the $300 million Australia is paying for each C-17 they are purchasing. Now the deal is pegged at $4.1 million by the White House, and at a whopping $5.8 billion in the official notification made last month to the US Congress.
Apparently the Indian Air Force has been taken aback at this high cost, and with various scams and revelations repeatedly tainting the ManMohan Singh administration, and with upcoming elections in key states, the Indian government is on a defensive wicket.
The Indian Express reports the Indian Ministry of Defence has written to Washington to disclose the comparative prices at which the aircraft has been sold to other nations.
This must surely be unwelcome news for Boeing which has seen the contract to its final stages, having completed commercial negotiations with the India Government.