Australia had submitted an MLSA project shortly after India signed the LEMOA, but New Delhi said at the time it would register further logistical pacts after the first operationalized one. In March, ahead of the AUSINDEX bilateral naval exercise, Australian diplomatic sources made a strong pitch in favour of a pact, saying the argument was „compelling“. AN AUSINDEX was the largest Australian naval contingent after India, with 1,000 employees and assets. Control options in an SLA have limitations. For example, these agreements must not include excessive contractual penalties if this is contrary to legal requirements. In principle, legal consequences such as the right of withdrawal or termination, reductions, penalties and damages or the reimbursement of fines must be specified in detail in a service level agreement. Why in News? On 29th August last the Union`s Minister of Defence, Manohar Parrikar, and the US Secretary of Defence, Ashton Carter, signed a Memorandum of Understanding on Logistics Exchange (LEMOA), an agreement which the United States has followed zealously since 2002 and which India had so far firmly rejected. The CASA Act (formerly known as the Nato Mutual Support Act) was passed to facilitate the exchange of logistical support, supplies and services between the United States and other NATO forces. It was amended in 1987 to allow ACSA with the governments of eligible non-NATO countries, with further amendments in 1989 and 1990. It also requires the exchange of logistical support, supplies and services (EVE) and allows EASA with UN agencies and the authorization of the loan or rental of equipment. It is necessary to report annually indicating all CASA transactions in the previous fiscal year and with requirements for the following fiscal year. The LEMOA provides for the U.S.
military. and India, which shares refuelling, spare parts and inventory facilities. It is remarkable that by deciding to opt for the LEMOA, the Modi government was able to overcome opposition to the same agreement during the two terms of the previous UPA (United Progressive Alliance) regime. The meaning of the term „Service Level Agreement“ (SLA) is already clear when it is broken down into spare parts and translated into German: „Service Level“ means „Quality of Service“ and „Agreement“ means „Agreement“. Therefore, an SLA is nothing more than a contract with a service provider that regulates the scope and quality of a given service. . . .