After weeks of deliberations, the two sides have agreed on a new end user verification agreement that negates the need for physical verification of the sensitive systems and relies on written assurances given by the Indian Air Force (IAF).

The $40 million deal to procure AN/AAQ-24 LAIRCM (Large Aircraft Infra Red Countermeasure Systems) for three Indian VVIP Business Boeing Jets entered muddy waters earlier this year, after India refused to sign a ‘compulsory’ agreement that would permit periodic physical verification of the systems by US inspectors.

While US argued that physical inspection of systems was mandatory by their laws and was needed to ensure that the technology did not fall into wrong hands, India had argued that as a sovereign nation, it could not allow inspections and offered access to records and written assurances.

MoD sources said the matter has now been resolved through a new end user verification agreement. Earlier, the missile protection system was being procured through a country to country agreement (Foreign Military Sale) that would mandate physical inspection of the systems due to US defence export laws.

To work things around this compulsory clause, the systems will now be purchased directly by the IAF from US-based Northrop Grumman that manufactures the systems. Sources say the company to company agreement would do away with the need to physical verification as the US firm would take responsibility for ‘correct usage’ of the missile protection systems.

Confirming that the issue has been resolved, US embassy officials said the three VVIP Business Boeing Jets are shortly expected to reach India. “We anticipate that the aircraft will be delivered shortly with al the equipment that India desires,” said a US Embassy official.

MoD officials say the US was being extra sensitive regarding the transfer as the missile protection system is new and has only been offered to the UK, Canada and India. A similar system is fitted on board the US President Air Force One and security of a number of top officials could be compromised if information on the system is leaked.

However, with all issues resolved, the three aircraft would be arriving in New Delhi by July-end, only a month behind schedule. The delay, officials say, is due to last minute issues in integrating a few systems on the VVIP jets.