Monday, September 27, 2021

Boeing Committed to Delivering Offset Commitments; Says Aerospace Company on AH-64E Apache Contract

by Staff Correspondent

Boeing is committed to delivering on its offset commitments that are in line with India’s Defence Procurement Procedure (DPP) and meeting the Indian government’s stated goals, including strengthening India’s aerospace capabilities, which forms part of the offset deals involved with the purchase of six AH-64E Apache, by the Indian Army for an estimated cost of $930 million.

Boeing’s AH-64 Apache options offset contract with India’s Ministry of Defence includes several Indian companies who are involved in manufacturing parts and providing services for various Boeing platforms.

Boeing further stated that the offset requirement per Defence Procurement Procedure (DPP) is 30 percent of the cost of acquisition and its fulfillment will be through various avenues (direct or indirect offsets) as outlined in India’s defence offset guidelines. However, Boeing refused to comment on the specifics of the offset contract, however pledged to deliver on its offset commitments.

Additionally, Boeing has partnered with Tata Advanced Systems, Tata Group’s strategic entity in the Aerospace & Defence industry to establish foreign direct investment by opening its first joint venture in India, Tata Boeing Aerospace Limited, which has been producing aerostructures for the AH-64 Apache for global customers, including fuselages, secondary structures, and vertical spar boxes for customers worldwide.

The six-unit Apache purchase is being conducted in two parts, the first a direct commercial sale from prime contractor Boeing and the second the aforementioned government-to-government Foreign Military Sale. The direct commercial purchase covers the helicopters, logistical support, spare parts, and associated services, while the FMS agreement involves the helicopters’ engines, electro-optical (EO) sensors, and radars.

Last year, in February 2020, India and the US signed a contract for the acquisition of six Apaches for the Indian Army during US President Donald Trump’s visit to New Delhi. The choppers are expected to be delivered in 2023.

Prior to the deal of six Apache Helicopters, India signed a deal for 22 Apache helicopters from Boeing through the Foreign Military Sales programme of the U.S. government in September 2015. The final five of the 22 Apache attack helicopters were handed over to the IAF at the Air Force Station, Hindan, in June, last year.

India is one of 17 nations to select the Apache and has the most advanced variant, the AH-64E Apache that is also flown by the U.S. and many other countries. The AH-64E Apache is designed and equipped with an open systems architecture including the latest communications, navigation, sensor and weapon systems.

It has an improved Modernised Target Acquisition Designation System that provides day, night and all-weather target information, as well as night vision navigation capability. In addition to classifying air and ground targets, the Fire Control Radar has been updated to operate in the maritime environment.

It is uniquely suited to meet a commander’s needs, including reconnaissance, security, peacekeeping operations, and lethal attack, across myriad environments – without reconfiguration.


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