Defence Ministry officials said that the Cabinet Committee on Security, CCS,chaired by Prime Minister Manmohan Singh cleared the proposal for purchase of the planes from the US through the Foreign Military Sales route. Under the deal, the US defence major Boeing, the manufacturer of the aircraft, will have to invest 30 per cent of the contract amount for setting up defence facilities in India.
After finalising the initial deal for 10 aircraft, the IAF is also planning to place orders for additional six C-17s.The C-17 will be the second American airlifter in the IAF transport fleet, which recently inducted the C-130 J Super Hercules. The four-engine C-17 aircraft can lift two T-90 tanks and artillery guns and are used for rapid strategic airlift of troops and cargo to operating bases throughout the world.
It can also perform tactical airlift, medical evacuation and airdrop missions. The aircraft has the capacity to carry over 130 fully-equipped combat ready troops.
In the recent past, India had finalised defence deals worth over eight billion US Dollars, including the C-130J, C-17, P-8I and Harpoon anti-ship missiles. Several more multi-billion dollar deals are in the pipeline for being cleared in the near future