Boeing signs $1bn deal with HAL
New Delhi, Dec 20 (UNI) American aerospace giant Boeing today signed a 10-year agreement with Hindustan Aeronautics Limited (HAL), intended to bring more than one billion dollars of new aerospace manufacturing work to India.
Under the deal, considered as the biggest-ever for a public sector defence undertaking, HAL will manufacture subsystems for Boeing's wide range of fighter planes such as F-15, F-18 Super Hornetts and Apace Helicpoters.
''An initial tranche of 20 million dollar worth of work is being transferred immediately,'' Jim Albaugh, President of Boeing Integrated Defense Systems, told reporters after signing the agreement with HAL Chairman Ashok K Baweja.
He said the company would send material and personnel in the coming weeks to set up the manufacturing facility.
Boeing, which is vying for India's major defence contracts for purchase of 126 multi-role combat aircraft, said the outsourcing from HAL was without any strings.
Mr Albaugh, however, added that Boeing would ask the Indian Government if it could use part of the amount as credit against future offsets in case it secured any major contract.
''The agreement represents an important step in our efforts to build solid long-term partnership in India to make Boeing products more globally competitive, while allowing HAL to grow and expand its potential market around the world,'' he said.