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Ahead of Prime Minister Narendra Modi's visit to the US, the cabinet committee on security on Tuesday cleared a multi-billion dollar deal for 22 Apache attack helicopters and 15 Chinook heavy-lift choppers with American aviation giant Boeing.
CH-53E and Chinook helicopters with US Marines take off from an airbase. Photograph: Omar Sobhani/ Reuters
"The deal for Apache and Chinook (helicopters) has been cleared," government sources said.
The CCS met after a Cabinet meeting, they said.
Many in the defence sector had expected the deal, valued to be over USD 2.5 billion (around Rs 164 crore) and pending since 2013 following finalisation of cost negotiations, to be signed during the visit of US Defence Secretary Ashton Carter in June this year.
The deal for Apache is "a hybrid one", with one contract to be signed with Boeing for the helicopter and the other with the US government for its weapons, radars and electronic warfare suites.
An Apache helicopter is seen after landing at an air base in during routine training. Photograph: Amir Cohen/ Reuters
The US has been pushing for this contract as it will further bolster American presence in the burgeoning defence market of India.
American companies have over the last decade bagged defence contracts from India worth around USD 10 billion, including for aircraft like P-8I maritime surveillance planes, C-130J 'Super Hercules' and C-17 Globemaster-III in the transport category.
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