Tuesday, September 22, 2015

India Approves Boeing Helicopter Deal...Finally.

After three years of waiting, India's Cabinet Committee of Security (CCS), headed by Prime Minister Narendra Modi and which is responsible for the purchase of weapons and equipment, has cleared a $2.5 billion deal to buy 22 Apache AH-64 Block III attack helicopters and 15 Chinook CH-47F heavy-lift helicopters from Boeing.

CCS approval, granted at a meeting Tuesday, means formalities have been cleared and the deal could be inked in the next two months, said a Defence Ministry official.

CCS clearance came ahead of Modi's Sept. 24-29 visit to the US, when he is scheduled to meet President Barack Obama.

While the Boeing deal was finalized in 2013, CCS clearance had been delayed because of issues relating to offset obligations, which have been sorted out, the MoD official said.

Boeing extended its price quote for the helicopters in July until the end of September, thereby agreeing to sell the helicopters at the price the company had quoted in 2013.

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