Money News

Boeing in pact with India's BEL for new facility

An Airbus A380 performs during a flying display at the 47th Paris Air Show at Le Bourget airport near Paris, June 21, 2007. REUTERS/Pascal Rossignol/Files

NEW DELHI (Reuters) - Indian state-run firm Bharat Electronic Ltd has signed an agreement with U.S. aircraft manufacturer Boeing Co to jointly set up a facility to help modernise India’s defence forces, the company said in a statement on Saturday.

The proposed analysis and experimentation centre will be staffed with local personnel who will work with India’s Defence Ministry, the statement said.

India is looking to spend $30-40 billion on imports over the next five years to modernise its largely Soviet-era arms by introducing new weapons systems.

It is allowing state-run and private firms to tie up with foreign defence equipment makers to scale up domestic production.

Boeing along with Lockheed Martin Corp, France’s Dassault Rafale, Sweden’s Saab are vying for a contract to supply India with 126 multi-role fighter jets potentially worth more than $10 billion.

Earlier, the Boeing India head said the firm was looking to bid for defence projects worth up to $31 billion over the next 10 years in India, as strategic ties between India and United States deepen.