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Ahead of Trump visit, CCS clears $2.9 B deals for 30 American choppers

24 MH-60R Seahawk naval helicopters for $2.12 B and 6 Apaches for $796 M to sweeten Presidential visit in the absence of trade deal

February 20, 2020 By Vishal Thapar Photo(s): By US Navy
The acquisition of the MH-60R will mark the biggest upgrade in the Indian Navy's rotary wing anti-submarine warfare capability

Five days ahead of the visit of US President Donald Trump to India, the Cabinet Committee on Security (CCS) on February 19 reportedly approved the purchase of 24 MH-60R Seahawk naval multi-role helicopters and 6 AH-64E Apache attack helicopters for the Army at an estimated cost of $2.9 Billion from the US.

The decision was taken at a meeting of the CCS chaired by Prime Minister Narendra Modi in New Delhi. Both acquisitions will be Government-to-Government deals under the US Foreign Military Sales (FMS) route.

These big ticket defence deals are being seen as a sweetener for President Trump's visit in the face of the failure of the two sides to arrive at a trade agreement. The chopper deals are also a sign of deepening Indo-US defence ties.

These two contracts will take the total value of Defence deals signed with the US since 2007 to $20 Billion. A host of other big ticket defence deals worth an estimated $7 Billion are also in the pipeline.

The CCS is learnt to have approved the import of 24 MH-60R naval helicopters at a cost of 15,157 Crore ($2.12 Billion) and the 6 Apache gunships for 5,691 Crore ($796 Million). The gunship acquisition will be a follow-on order to the September 2015 contract for 22 Apaches for the Indian Air Force.

The CCS go-ahead sets the stage for the signing of the Letters of Offer and Acceptance (LoA) - or contracts - in the very near future, possibly even during President Trump's visit to New Delhi on February 25. The commercial offers for the two acquisitions are valid till February and March respectively.

These two contracts will take the total value of Defence deals signed with the US since 2007 to $20 Billion. A host of other big ticket defence deals worth an estimated $7 Billion are also in the pipeline.

The Seahawks will be equipped with Hellfire missiles, MK-54 torpedoes and precision kill rockets. The first six are meant to be delivered within a year of the signing of the contract and the remaining 18 within four years

These include acquisition programmes for 30 combat drone for $2.5 Billion, 6 additional P8I long range maritime reconnaissance aircraft for $1.8 Billion, the National Advanced Surface-to-Air Missile (NASAM-II) also for an estimated $1.8 Billion and 13 Mk-45 naval guns for about $1 Billion.

Analysts also see in the spate of mega defence deals a bid to assuage US sentiment after the signing of the recent contract for the S-400 air defence systems and the lease of an additional Akula-II nuclear powered attack submarine with Russia for $5.43 Billion and $3 Billion respectively.

The 6 Apaches will mark the Indian Army's foray into the attack helicopter role. These will be armed with Hellfire Longbow air-to-ground missiles and Stinger air-to-air missiles besides guns and rockets. These will be delivered by Boeing within three-and-a-half years of the signing of the contract

The MH-60R Seahawk multi-role helicopters, to be delivered by Lockheed Martin-Sikorsky, will mark the most significant rotary wing upgrade for the Indian Navy, replacing its ageing fleet of Sea King helicopters and bolstering anti-submarine warfare capability.

The Seahawks will be equipped with Hellfire missiles, MK-54 torpedoes and precision kill rockets. The first six are meant to be delivered within a year of the signing of the contract and the remaining 18 within four years.

The 6 Apaches will mark the Indian Army's foray into the attack helicopter role. These will be armed with Hellfire Longbow air-to-ground missiles and Stinger air-to-air missiles besides guns and rockets. These will be delivered by Boeing within three-and-a-half years of the signing of the contract.