Finally : India, US sign $3-bn contract for Apache, Chinook helicopters

[Chanakyaa]

On Monday in New Delhi, US and Indian officials signed two contracts for the purchase by the Indian Air Force (IAF) of 22 AH-64E Apache attack helicopters, and 15 CH-47F Chinook multi-mission heavy lift helicopters.

Two of the contracts, which were signed in the afternoon between teams from Boeing headquarters in the US and Indian defence ministry officials, were for the “direct commercial sale" (DCS) part of the contracts. This includes the entire Chinook helicopter, and the flying portion of the Apache (less engines), as well as logistic support, spares and services.

The purchase of the Apache weaponry and radar was signed separately as a “foreign military sale" (FMS) purchase by the Indian defence ministry, which signed a “letter of agreement" (LoA) to this effect with the Pentagon. The FMS portion of the sale includes munitions, training, aircraft certification, and components like engines, electro-optical sensors and the radar.

“Contracts for purchase of 15 #Chinook and 22 #Apache Helicopters signed", tweeted defence ministry spokesperson, Sitanshu Kar, late on Monday evening. He did not release further details.

The value of the deal for both helicopters, including DCS and FMS portions of the sale, is approximately $3 billion.

According to the contract signed, Boeing will start delivering the Chinook and Apache helicopters 36 months from today. The entire delivery is to be completed in 48 months from the signing of the contract.

Both helicopters will be delivered in fly-away condition, i.e. fully-built and ready for operations. Since Boeing is committed to a 30 per cent offset liability, there may be some portions that are built in India.

Already, Indian companies are involved in the building of the Chinook. Bangalore-based Dynamatics Technologies builds the aft pylon and cargo ramps for the Chinook’s global supply chain.

Boeing sources say that additional Indian vendors are being scouted for building more components.

This contract will further consolidate the US position as India’s second-biggest arms supplier, behind only Russia.

The Apache AH-64E is the world’s most fearsome attack helicopters. It is armed with anti-tank missiles, rockets and a chain gun that fires 625 rounds per minute that can rip apart and armoured vehicles. The Apache has flown close to a million mission hours in conflicts from the First Gulf War in 1991 to Afghanistan and Iraq.

Similarly, the Chinook, which first flew in the Vietnam War, but has continuously evolved in design, is one of the world’s most well-reputed heavy lift helicopters. It is capable of underslinging and lifting a light 155 millimetre howitzer to support troops in high altitudes of up to 15,000 feet.

 

[Chanakyaa]

India, US sign $3-bn contract for Apache, Chinook helicopters - The Smart Investor

India to purchase Apache, Chinook helicopters from Boeing - The Hindu

A few hours before Prime Minister Narendra Modi left for the United States, the Union government approved two major defence deals with the US.
India has signed a contract with Boeing to purchase 15 Chinook heavylift helicopters and 22 Apache attack helicopters, Defence spokesman said in New Delhi on Monday.

A few hours before Prime Minister Narendra Modi left for the United States on Tuesday, the Union government approved two major defence deals between the two countries.

The deals will ensure that the U.S. remains among the top military suppliers for the Indian armed forces for some years to come.

It will also help in further advancing the nascent efforts by the Indian private sector to create an aerospace industrial base in India.

An official in the know said the purchase of Apache multi-role combat helicopters had two components — a foreign military sales (FMS) agreement between the two governments and a direct commercial sale deal with Boeing.

In the case of Chinook — heavy-lift helicopter with tandem rotor — the deal is a direct commercial deal that would be signed between Boeing and Indian side.

The contract would include a clause for follow-on orders for four more Chinooks and 11 more Apaches, officials said.

The U.S. side has been aggressively pushing for concluding the two deals at the earliest because New Delhi had been holding back for the past five years. This meant that the U.S. side had to keep extending commercial bids all these while.

The big ticket deals would boost the U.S.’ rapid climb in the Indian market as a major defence supplier. Once dominated by the Soviet Union, and later by Russia, the market is today open to various countries. And the U.S. and Israel have been making the most of the opportunity.