MoU with Boeing may result in $1 billion manufacturing work for HAL over 10-years

New Delhi: Boeing Co said Thursday that it has signed an initial pact with India's state-owned Hindustan Aeronautics Ltd (HAL) to outsource the manufacture of aerospace equipment to the country.

"The 10-year memorandum of understanding is intended to bring more than $1 billion of new aerospace manufacturing work to India," Boeing said.

"Under the agreement, Boeing and HAL will explore business opportunities aimed at transferring work packages to India with an initial value of $10 million to $ 20 million annually, increasing in size and complexity as business opportunities develop," the company said.

According to Jim Albaugh, president and CEO of the company's Integrated Defense Systems unit, Boeing plans to move work worth $20 million to HAL very soon.