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Global Cos Vie For $12B India Defense Contracts

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NEW DELHI (Dow Jones)--The Indian Air Force Wednesday said it has completed the technical evaluation of six fighter jets from companies including Lockheed Martin Corp. (LMY) and Boeing Co. (BA) for a contract estimated at more than $10 billion.

The South Asian nation has also invited initial bids, estimated at $2 billion, from global companies to buy 22 combat helicopters and another 15 for heavy-lift duties.

India plans to buy the combat jets and helicopters to modernize its mainly Soviet-vintage defense fleet. The Indian Air Force has 1,700 aircraft, including helicopters and transport planes, according to its Web site.

"The technical evaluation report (of the fighter jets) is now with the Ministry of Defense and we are awaiting their clearance," Air Force Chief Fali Homi Major told a news conference.

Lockheed's F-16 Falcon, Boeing's F/A-18, the MIG-35 of Russian Aircraft Corp.'s MiG, Saab AB's (SAAB-B.SK) JAS-39 Gripen, Eurofighter Typhoon and Dassault Aviation SA's (AM.FR) Rafale are in the running with the companies submitting bids.

"We expect the Ministry of Defense to clear it soon, so that flight evaluation (field tests) can begin in two or three months after their approval," he added.

Air Chief Marshal Major said also that France's Dassault Aviation SA (AM.FR) has been allowed to rejoin the bidding process. He declined to elaborate.

India last month rejected an earlier bid by the French aircraft maker "during the technical evaluation phase due to non-compliance with some operational requirements," air force officials had said earlier.

Rafale International is a grouping of French defense companies Safran SA (SAF.FR), Thales SA (HO.FR) and Dassault.

Major said also that bids had been invited Sunday for 22 attack helicopters, and that bids for the heavy-lift helicopters were in the process of being sent Wednesday.

Attack helicopter makers such as Russia's Kamov and Mil Moscow Helicopter Plant, Italy's AgustaWestland, a unit of Finmeccanica SpA (FNC.MI), and Textron Inc.'s (TXT) Bell Helicopter unit had earlier expressed interest in the deal.

Eurocopter, the helicopter manufacturing unit of European Aeronautic Defence & Space Co. (EADSY), too, has pitched its Tiger attack helicopter for the tender, while Boeing Co. (BA) is offering its Apache AH-64D Longbow model.

In the heavy-lift helicopter category, Boeing is pitching its twin-rotor Chinook. Sikorsky Aircraft, a unit of United Technologies Corp. (UTX), also plans to bid

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