New Delhi, October 17
In what could be a major blow to the Indian Army’s artillery purchase programme and also the efficacy of its newly created specialised mountain strike corps, the gun maker, contracted to supply the specialised light weight artillery guns, has announced that it was shutting its production line in the UK, albeit after waiting for the Ministry of Defence to decide on the matter.

The ultra light howitzer (ULH) M777 are of 155 mm -- the same as Bofors but much lighter. These can be transported by helicopters and placed on mountain ridges quickly. This was supposed to be purchased by India from the US through the foreign military sales route. The gun maker, BaE systems, produces the gun at its plant in the UK. Since the controversy over the purchase of the Bofors erupted in late 1980s, no new artillery gun has been procured by the Army for its artillery.

The discussions for the gun were going on for the past three years. These were at a final stage months before India announced its new mountain strike corps in July.

The Ministry of Defence (MoD) had raised serious objections to the purchase of 145 ULHs from the US under an inter-governmental agreement, costing nearly $ 647 million (Rs 3,000 crore approx at today’s dollar valuation).

Besides equipping the upcoming mountain strike corps, the guns were planned to be stationed in the existing seven corps which India has in the Himalayas facing China and Pakistan.

BaE Systems, India, confirmed the stoppage of the ULH production line.

Dean McCumiskey, Managing Director and Chief Executive, BAE Systems in India, said: “We recognise that the discussions between the US Government and the Government of India for purchase of howitzers have not concluded within the extended offer expiry date of October 15”. The company is ready to support consultations between the US and India, he said. October 15 was the final deadline set by the US congressional notification.

The company’s existing orders are nearing completion and it has said it can no longer continue to maintain the same level of staffing meaning thereby it was stalling production.

The delay had been caused after Defence Minister AK Antony ordered a probe to look into an alleged irregularity in conduct of trials of the gun. A technical panel has been tasked with examining all the complaints relating to the procurement.