India Cabinet Clears $2.5B Boeing Apache, Chinook Buy

The Indian government on 22 September approved the long-pending acquisition of Boeing attack and heavy lift helicopters for the Indian Air Force (IAF) for an estimated USD2.5 billion, officials said.

The 22 Apache helicopters will replace IAF’s Mi-35 attack helicopters and will be armed with Hellfire missiles.

The deal is the first big military contract for the U.S. since PM Modi’s government took office.

The Cabinet Committee on Security (CCS) met here on Tuesday after a meeting of the cabinet, and cleared the proposal worth Dollars 2.5 billion, defence ministry sources said.

India and the United States have rapidly expanded military and business ties in recent years, despite discord over issues such as intellectual property rights and market access.

Apache deal is a hybrid one, as one deal to be signed with Boeing for the choppers and the other with the USA government for its radars, weapons and electronic warfare suites.

The deal, which has been pending since 2013, was to be signed after finalisation of price negotiations during the visit of USA defence secretary Ashton Carter in June this year.

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

Boeing had already given 10 price extensions and the last extension for a month was given on the request of the Indian government.

The Apache AH 64D Longbow helicopters are one of the most advanced multi-role combat helicopters, having all-weather and night fighting features, ability to track up to 128 targets in less than a minute and engage with 16, besides stealth characteristics, advanced sensors and beyond visual range missiles.

Reports suggest both platforms, which have been in combat in Afghanistan and Iraq, had beaten competition from Russian Federation , which offered its Mi-28N Night Hunter and Mi-26 heavy-lift helicopters. The Chinooks are to be part of a new mountain corps the army is putting together with the intent of deploying it on the border with China.