New Delhi: Ahead of Aero India, touted as Asia's biggest air show, aviation major Boeing has made it clear that it cannot wait indefinitely for the government to sign a deal for Apache attack helicopters and Chinook heavy lift choppers.
According to Pratyush Kumar, Boeing India president, "We are inching closer to a situation where our ability to hold prices will not be there." In other words, there is a possibility that India would need to re-negotiate the commercial aspects of the $2.5 billion (over rupees 15,000 crores) deal and end up paying more for helicopters that the armed forces urgently require.
Cost negotiations with Boeing ended 18 months ago; since then the company has agreed to extend the validity of negotiated prices twice with the latest six-month extension being granted in October 2014.
Sources in the Defence Ministry have indicated that the Cabinet Committee on Security may approve the purchase of 22 AH-64E Apache and 15 CH-47F Chinook helicopters before this financial year closes, but there are still no clear indicators of when that will happen.
13/02/15 Vishnu Som/NDTV
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According to Pratyush Kumar, Boeing India president, "We are inching closer to a situation where our ability to hold prices will not be there." In other words, there is a possibility that India would need to re-negotiate the commercial aspects of the $2.5 billion (over rupees 15,000 crores) deal and end up paying more for helicopters that the armed forces urgently require.
Cost negotiations with Boeing ended 18 months ago; since then the company has agreed to extend the validity of negotiated prices twice with the latest six-month extension being granted in October 2014.
Sources in the Defence Ministry have indicated that the Cabinet Committee on Security may approve the purchase of 22 AH-64E Apache and 15 CH-47F Chinook helicopters before this financial year closes, but there are still no clear indicators of when that will happen.
13/02/15 Vishnu Som/NDTV
