New Delhi:
The US is hoping that India will choose Sikorsky Aircraft's S-70B Sea Hawk helicopters at a 16-aircraft tender worth over $1 billion.
Defence makers in America hope the decision may come during a high-profile visit to the United States by Prime Minister Narendra Modi that started on Friday. But sources in the Indian government say that commercial bids for the deal have not yet been opened.
India was the top foreign buyer of US arms last year, according to defense research firm IHS Janes, and the two governments are now negotiating a series of specific defense collaboration projects that would involve more co-production.
The Sikorsky deal would be one of several large US arms purchases by India that are nearing completion, including over $2.5 billion in orders for Boeing Co's AH-64D Apache and CH-47 Chinook helicopters.
Sikorsky Aircraft, a unit of United Technologies Corp, declined comment on the potential helicopter order. Sikorsy is expected to beat out NH Industries, a joint venture of Airbus, AgustaWestland and Fokker Aerostructures.
Those deals could in turn lay the groundwork for a much larger order of 123 helicopters for the Indian Navy, said one of the sources, who was not authorized to speak publicly.
Boeing continues to negotiate with India on the Apache and Chinook helicopters and hopes to have signed contracts by the end of the year, said spokeswoman Caroline Hutcheson.
US weapons makers, keen to offset declining US and European military spending, are watching closely to see whether Mr Modi delivers on promises to expand India's strategic relationship with the United States.
Boeing already has a huge presence in India due to its sales of P-8 maritime surveillance aircraft and C-17 transport planes, and Mr Modi is slated to meet Boeing Chief Executive Jim McNerney during his U.S. visit.
The US unit of Britain's BAE Systems Plc is also ready for talks with India about the possible sale of up to 145 of its M777 towed 155mm howitzer artillery pieces, a deal valued at up to $885 million.
Rahul Madhavan, senior manager for aerospace and defense at the U.S.-India Business Council lobby group, said the Modi government appeared to be embracing the Defense Trade and Technology Initiative (DTTI), which aims to increase collaboration on 17 specific defense projects.
"The Indian administration is taking this DTTI initiative forward and it is no longer perceived as just being a US centred type of affair, or a one-way street," he said. "The win-win situation is now more apparent for both sides."
A DTTI deal that appears to moving forward calls for joint development and production of the next generation of Javelin "fire and forget" anti-tank missile system produced by Lockheed Martin Corp, which is in competition with Israel's Spike missile system, built by Rafael.
An Indian official said the Javelin deal fit with Modi's "Make in India" strategy, but New Delhi remained concerned that Washington was not offering the latest version of the missile.