-- Boeing named preferred vendor for 37 heavy-lift, attack
helicopters
-- India, Boeing in commercial discussions for 15 Chinook, 22
Apache helicopters
(Adds comment from source, background)
By Santanu Choudhury
NEW DELHI--India has selected Boeing Co. (BA) its preferred
vendor to supply 37 heavy-lift and attack helicopters to the
country's air force, Defense Minister A.K. Antony said Monday.
The air force--in separate deals--plans to acquire 15 Chinook
CH-47F heavy-lift helicopters and 22 AH-64D Block-III Apache attack
helicopters from the U.S. company, the minister told lawmakers in
the lower house of parliament.
Mr. Antony said the "acceptance of necessity cost" for the
Chinook helicopters is about 24.68 billion rupees ($457 million)
and that of Apache helicopters is about 30.95 billion rupees ($573
million).
He didn't define "acceptance of necessity cost."
The final cost of the orders would depend on the outcome of the
contract negotiations with Boeing, Mr. Antony added.
A person familiar with the matter said commercial discussions
with Boeing have begun and will likely take a few months more.
Boeing's twin-rotor Chinook was chosen as the preferred bidder
over Russia-based MiL Moscow Helicopter Plant's Mi-26, while the
Apache was selected over the Mi-28.
The zeroing in of the Boeing helicopters signifies a drastic
shift for India toward diversifying its defense purchases and
moving away from its decades-long reliance on Russia. India already
operates Mi-26 helicopters.
U.S. military sales to India have surged in recent years, helped
by growing diplomatic relations between the two democracies and due
to India's push to replace its aging Soviet-vintage equipment as
neighbors Pakistan and China expand their military
capabilities.
In the past few years, Boeing has received orders from India to
supply C-17 Globemaster airlifters as well P8I long-range maritime
reconnaissance and antisubmarine aircraft for several billion
dollars. India also purchased Super Hercules C-130J
military-transport planes from Lockheed Martin Corp.
New Delhi plans to spend about 1.93 trillion rupees on defense
in the financial year through March 2013, an increase of 13% from
last year. It has earmarked 795.79 billion rupees to buy new
weapons.
Write to Santanu Choudhury at santanu.choudhury@dowjones.com