$2.5-billion deal for Boeing military choppers cleared by cabinet

Speculation is rife that the proposed acquisition of 22 AH-64D Block-III Apache attack helicopters from USA aviation giant Boeing for the Indian Air Force (IAF) and 15 Chinook Ch-47F heavy-lift helicopters, again from Boeing, for the IAF may be discussed for final approval at a meeting of the Cabinet Committee on Security (CCS).

The deal for the Apaches was “hybrid”, with one contract to be signed with Boeing for the helicopters and the other with the United States government for its weapons and radars, according to the Press Trust of India news agency. “The deal is worth US$2.5 billion”, a government source told AFP.

Experts in defence sector had expected the deal, to be valued over $2.5 billion and since 2013 pending following finalisation of cost agreement, was signed during the visit of U.S. Defence Secretary Ashton Carter in June 2015.

The deal will have clauses to place follow-on orders for four extra Chinooks and 11 more Apaches.

USA had been pushing for this contract as it will further strengthen their presence in the already expanding Indian defence market.

The helicopter deal has been approved despite more than 10 price revisions, including one involving changes suggested by India.

Both platforms, which have been in combat in Afghanistan and Iraq, had beaten off competition from Russian Federation , which had offered its Mi-28N Night Hunter and Mi-26 heavy-lift copters. These attack helicopters were to be deployed by the army as part of its three Strike Corps and for the new mountain strike corps being raised for China border. This state-of-the-art attack helicopter will be acquired with Hell Fire missiles and around 8,000 rockets.