Number six of the six C-130J Super Hercules ordered by India, under the US Foreign Military Sales (FMS)  program, departed Lockheed’s Marietta,Georgia facility  on December 15. This aircraft, like its five predecessors, was delivered ahead of schedule and under budget, according to the supplier. Lockheed’s win was  the first large order placed on an American OEM by India’s Ministry of Defence in decades.

Lockheed is hopeful of a follow-on order of another six planes that would put the overall value of the two deals at close to two billion dollars.

According to NewKerala.com, in the aftermath of the 6.8 magnitude earthquake last September, a C-130J was the first of the planes to fly to the nearest air base in Baghdogra in West Bengal, carrying relief supplies and National Disaster Management Force members, within a flying time of under three hours. It also did several more sorties to carry relief material for the victims of the earthquake.

Both Boeing and Lockheed received rejection letters after the technical evaluation process was completed for the Medium Multi-Role Combat Aircraft (MMRCA), a project to buy 126 aircraft that is probably worth over $10.5 billion. India’s largest legacy supplier, Russia, was also rejected by the Air Force.

The apparent contenders remaining are both European, the Eurofighter and the Dassault’s Rafale.

Several weeks ago, there were news reports that India demurred on a possible trip by Secretary Hillary Clinton to New Delhi. This was my first major indication that the mega project was not likely to favor the American side and the Indians did not want to be pressured.

Impact: While the loss of this business is a setback to the ambitions of American prime defense contractors, the fact remains that India is already commited to the Boeing P-8i reconnaissance planes, has started to receive deliveries of the Lockheed Martin C-130J transport aircraft and is on the the final track to order the C-17′s built in my backyard in Long Beach, California. This adds up to about 8 billion dollars and more. Additional orders of American hardware are expected in the next few years.

The first of six C-130J Super Hercules for India took to the skies for its maiden flight yesterday, according to maker Lockheed Martin Corporation. The Indian Air Force logo/colors are visible on the plane which was first shown a few months ago.

C-130J Hercules for India makes maiden test flight

The aircraft will now complete a series of company and customer flight tests prior to delivery in December. India placed an order for six of these large propeller-driven transport planes for almost $1 billion two years ago.

“We think we have the finest military hardware in the world, and if India is upgrading its defence capabilities, they should buy American,” P.J. Crowley, U.S. State Department spokesman, said following Indian Defense Minister A.K. Antony’s meeting with Hillary Clinton. “Our understanding is that some of those decisions are coming up fairly soon.”

Secretary Clinton greets Minister Antony. Indian Ambassador Shankar looks on

The selection of one of the US fighter jet bids would help cement a growing alignment of two of the world’s largest democracies, a political bond that Mr Obama will stress heavily on his first visit  to India in November. Two of America’s largest defense contractors, Lockheed Martin and Boeing are among six foreign companies that India is evaluating, and winning the work would create or save thousands of U.S.  jobs. The project for 126 aircraft (the so-called MMRCA or Medium Multi-Role Combat Aircraft)  – worth up to $11 billion  – is the world’s largest pending military hardware deal.

Separately US and Indian officials have been negotiating an agreement that would see New Delhi buy ten C-17 Globemaster transport planes, also manufactured by Boeing in Long Beach, California at the former Dougla Aircraft Company facility. The deal, which is in its final stages and worth an estimated two to five billion dollars, could be signed in November. Boeing has already won a $2.1 billion order to supply India’s Navy with the P-8i Orion surveillance aircraft.

In the meantime, New Delhi is hoping to convince the U.S. to remove controls on defense exports to India, for long a major drag on constantly improving ties between the two countries. “We want an early solution to that (export control restrictions),”  Minister Antony told reporters ahead of his talks here. The issue has been top of the agenda for India — figuring prominently in recent talks between the two countries. It was raised during Indian Foreign Secretary Nirupama Rao’s talks in the U.S. capital earlier in the summer. (The Foreign Secretary is a bureaucratic position in India, usually filled by an officer of the Indian Foreign Service or Indian Administrative Service and is not the equivalent of Secretary of State).

Antony was in Washington in advance of President Obama’s first visit to India, due in November, right after the U.S. mid-term elections.