As
part of Prime Minister Narendra Modi’s plan to bolster the nation’s military
posture, India is to acquire 22 Boeing AH-64E Apache attack helicopters and 15
CH-47F Chinook heavy lift helicopters for the Indian Air Force (IAF), valued at
$2.5 billion.
Approval
stage
Officials
in the know said the attack helicopter (Apache) and the heavy lift helicopter
(Chinook) are currently in the Government approval stage.
“The
Ministry of Finance and Cabinet Committee on Security needs to approve…before
contracts are signed. All other steps are done,” officials said.
Sources
pointed out that India’s defence acquisition process mandates that all
contracts that are in excess of $50 million require 30% offsets. Way back in
2013, Boeing had signed a memorandum of understanding with Dynamatic
Technologies of Bangalore, to manufacture the aft pylon and cargo ramp
assemblies for the Chinook. Sources indicated that Boeing had done this in
anticipation of the IAF order. When contacted, Boeing said it was deferring all
questions on the Apache procurement to India’s Ministry of Defence for comment.
Offsets
galore
“Defence
spending eligible for offsets through 2017 are huge. Based on the current order
pipeline, big procurement programmes ensure that offset obligations could
become an opportunity worth $10-$20 billion for the domestic industry,” said
sources.
Another
official pointed out that offsets are expected to spur growth, as well as aid
the basic intent of the offset policy, which is to build a domestic defence
manufacturing base.
Force
projection
“Multinational
original equipment manufacturers with Indian defence contracts can discharge
their offset obligations by sourcing military grade components from India,” the
official added.
Boeing’s
Apache is the most capable multi-role combat helicopter, “combining performance
and lethality with more affordable and efficient maintenance.
“It
will provide the Indian Air Force with enhanced dominant force projection
capabilities, and will address the full spectrum of conflict to peace keeping
and nation building.”
Newest
member
India
has been offered the AH-64E, the newest member of the combat proven Apache
family, and is to get the latest upgraded version of the helicopter, which has
been delivered only to the US Army. In the case of Boeing’s Chinook helicopter,
“the tandem rotor H-47 Chinook is the most capable, advanced heavy lift
helicopter, providing maximum value at the lowest risk.
The
H-47 Chinook offers India heavy lift and high altitude transportation for a
multitude of military, humanitarian, rescue, disaster relief, fire fighting and
nation building missions in all climates and conditions and altitudes.”
Flight
trials
The
Chinook and an advanced version of the Mi-26 helicopter were put to flight
trials in 2011, in desert and high altitude terrain. Boeing’s Chinook had
beaten out Russia’s Mi-26, when the Indian Defence Ministry had opened bids in
November 2012, said sources, adding that the Russian bid was set aside after
officials failed to provide details on how they would execute their offset
liabilities.
Boeing
is deferring questions on the contract to India’s Ministry of Defence.
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