NEW DELHI, June 25 (Reuters) - India's defence procurementagency has cleared a proposal to buy 145 M777 Ultra LightweightHowitzer artillery guns from BAE Systems in a dealworth an estimated $750 million, a defence ministry source saidon Saturday.
Under the deal, 120 of the 145 guns will be assembled inIndia, said the source, who asked not to be identified in linewith defence ministry rules.
Prime Minister Narendra Modi wants to upgrade the country'smilitary hardware by replenishing its range of artillery weaponsafter years of delays in ordering new equipment.
But Modi wants deals with foreign companies to include thesetting up of factories and plants in India to boost the localindustry.
BAE said in February it had chosen Indian conglomerateMahindra Group to build a plant for the assembly of Howitzerartillery guns it hopes to sell to India.
The source said the proposal would soon be communicated tothe United States, where BAE manufactures the weapons. (Reporting by Nigam Prusty; Writing by Aditya Kalra; Editing byMark Potter)