Feb 20, 2015
India May Sign AH-64 CH-47 Deal by Boeing Deadline
A Boeing executive said the company cannot guarantee it will be able to keep the price quote beyond March 31 because it cannot afford to "wait endlessly".
India delayed signing the contract because of a lack of funds. Even in the current financial year, which ends March 31, there are no funds for new purchases because money has been diverted from the Capital Head, which is reserved for buying new weapons, to the Revenue Head account, which is used to pay for salaries and day-to-day expenses of the 1.5-million-person military.
Under these circumstances, MoD is now considering signing the $2.5 billion contract before March 31 but begin making payments in the next financial year.
The Boeing executive said they will respond to this method of payment after such a proposal is received.
However, before the deal is inked it will need clearance from the Cabinet Committee on Security which is headed by the prime minister.
The Indian Air Force selected Boeing's AH-64E Apache and CH-47F Chinook helicopters over the Russian Mi-28H Night Hunter and Mi-26 heavy lift helicopter in 2012.