Boeing Co. (BA) Thursday said it has signed an agreement with India's state-run Hindustan Aeronautics Ltd. to source so-called weapons bay doors for its P-8I long-range maritime patrol and anti-submarine warfare aircraft.

Under the $4.7 million contract, HAL will supply the first set of doors to Boeing by December, the U.S. aircraft maker said.

The contract is part of orders for eight P-8I planes received by Boeing from the Indian Navy in January 2009.

Boeing said it will supply the first P-8I Plane to India in 2013.

"This contract is part of our offset obligation of $640 million for the P-8I program," said Vivek Lall, vice president and India country head for Boeing Defense Space & Security.

Under current rules, foreign companies that receive import orders in excess of INR3 billion must draw at least 30% of that order from domestic suppliers or make a similar sized investment within India, in what is known as an offset.

The deal for eight P-8I planes is valued at $2.1 billion.

-By Nikhil Gulati, Dow Jones Newswires; +91-11-4356-3305; santanu.choudhury@dowjones.com
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