Reports: India signs $2.1 billion deal for 8 Boeing P-8Is

Boeing plans to hold a press conference tomorrow about reports that India has signed a $2.1 billion deal to buy eight P-8I maritime patrol aircraft.

Until then, here’s a snippet from one of the better articles in the Indian press this morning about the deal.

The UPA government has quietly gone ahead and signed thebiggest-ever defence deal with US: a $2.1 billion contract for eight Boeing P-8I long-range maritime reconnaissance (LRMR) aircraft forNavy.

TOI had reported on December 27 that the huge deal was finally on theverge of being inked after protracted negotiations and clearance from theCabinet Committee on Security.

The actual signing took place on January 1, with defenceministry’s joint secretary and acquisitions manager (maritime systems) PreetiSudan and Boeing integrated defence systems vice-president and country headVivek Lall signing the contract, sources said.

But, strangely enough, the defence ministry is keeping thedeal under wraps. Incidentally, the previous NDA regime had also signed aflurry of mega defence deals — like the $1.5 billion one for Russian aircraftcarrier Admiral Gorshkov and $1.1 billion one for three Israeli ‘Phalcon’ AWACS(airborne warning and control systems) — in the run-up to the April-May 2004general elections.

Sources said the P-8I contract was “a direct commercialagreement with Boeing”, with “some issues of end-use verification yetto be fully sorted out” with the US government.


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3 Responses to Reports: India signs $2.1 billion deal for 8 Boeing P-8Is

  1. Matt 5 January, 2009 at 4:30 pm #

    Hmmm, I thought Boeing was trying to sell the 737 AEW&C to India as well, but a 2004 deal would have been before my time in the industry.

    At least Boeing finally picked up another decent contract. After losing so many I was wondering how long before they will have to bring up more layoffs. What are the next big contracts, besides KC-X rebid, possible GOES-R rebid, and CSAR-X rebid? EP-X?

  2. Stephen Trimble 5 January, 2009 at 4:36 pm #

    Off the top of my head, Boeing’s near term opportunities are KC-X, CSAR-X, TSAT, SDB Increment 2, ACS and F/A-18E/F plus-ups. EP-X is a bit further out, but that’s a very solid opportunity for them. I’d add Air Force One replacement to that list, too.

  3. Stephen Trimble 5 January, 2009 at 4:38 pm #

    Oops. Forgot a big one: ARH.

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