Boeing signs offsets deal with Indian defence PSUs for P-8I contract

New Delhi: Boeing Co division, Integrated Defence Systems, has signed agreements with Indian defence public sector companies for the supply of equipment which will be fitted on Indian P-8I maritime surveillance aircraft. The P-8I, a variant of the US Navy's P-8A Poseidon, is a long-range, anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft.

"We have signed agreements with Indian companies such as Bharat Electronics Ltd (BEL), Electronic Corporation of India Ltd (ECIL) and Hindustan Aeronautics Ltd (HAL) for supplying equipment to us for the Indian P-8Is to be built in the US," Boeing India chief Vivek Lall said here.

"They will be supplying indigenous equipment and spares such as transponders and other electronic equipment for the aircraft," he added.

The Obama administration cleared the $2.1 billion sale to India of eight Boeing manufactured P-8I maritime patrol aircraft sometime in March this year. The deal overtook an earlier $1 billion Lockheed sale of six C-130J Super Hercules military transport planes to the Indian Air Force to become the largest US arms sale to India to date.

Under terms agreed upon, Boeing is to deliver the first P-8I within 48 months of signing the contract, and the remaining seven by 2015.

Boeing's P-8I contract includes associated support equipment, spares, training and logistical support through June 2019, the State Department said in its notice.