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Publish Date : 17-Jul-2015

India has cleared procurement of a further four P-8I maritime surveillance aircraft for US $1 billion from Boeing, which waits for the signing of another $2.5 billion deal to buy attack and heavy-lift helicopters.

The highest body in the MoD that decides weapons procurement, the Defence Acquisition Council (DAC), cleared the procurement of additional P-8I aircraft Tuesday on a government-to-government basis to top the 8 already contracted in 2009.

The Indian Navy last year invoked the option clause in the deal under which it could order a further four P-8Is. The P-8I is the Indian version of the P-8A.

Boeing extended its price quote for the twelfth time, earlier this month, for a $2.5 billion tender involving the sale of 22 Apache and 15 Chinook helicopters to India.

Although Boeing won the tender in a global competition in 2013, the deal is yet to be finalized.

The MoD sources said the helicopter tender should be concluded in the next 3 months as a matter relating to offset fulfillment was resolved.

Although Boeing did not provide all required documents related to the offset requirements, MoD said it is now satisfied with the documentation and that Boeing will fulfill offsets amounting to 30% of the total value of the deal.

The source added, "There is nothing holding back the contract further."

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