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U.S. Def Secretary May Visit India In May To Sign Major Deal
"They (Defence Ministry) kept asking for extensions and we did provide them as and when appropriate. It is not always possible to keep extending because we live in a world where we feel inflationary pressure," Boeing India President Pratyush Kumar had said in a press conference here.
Boeing has extended the price validity for the deal at least twice since cost negotiations concluded in 2013, with the last extension for a period of six months granted in October 2014.
Incidentally, the present Defence Procurement Policy does not allow room for increase in price once a bid has been shortlisted. In the event of the original manufacturer seeking a higher price than the one agreed upon, the tender can be terminated and a fresh one issued, as per defence officials.
The deal for the Apache is a "a hybrid one", with one contract to be signed with Boeing for the helicopter and the other with the U.S. government for its weapons, radars and electronic warfare suites.
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, C-130J 'Super Hercules' and C-17 Globemaster-III.
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