Sunday, December 4 2005 18:19 Hrs (IST) - World Time -

Mumbai: US aerospace firm Boeing Co and European plane maker Airbus Industries would outsource aerospace systems works valued over USD three billion to India once the trans-Atlantic rivals finalise the deal to supply 111 aircraft to Air India and Indian Airlines.

"This time the government has made an offset clause mandatory for the aerospace firms abroad if they sell aircraft to India. It should be at least 30 per cent of the total value of the deal," a top ministry official told PTI here.

While government has already cleared the USD 2.2 billion fleet acquisition plan of Indian Airlines from Airbus, Air India is awaiting clearance from the Union Government for its USD 7.1 billion aircraft purchase deal from Boeing.

"Since the total value of both the airlines' aircraft purchase is about USD 9.3 billion, Indian companies will be getting at least USD 3.1 billion offset order," the official said.

Indian Airlines plans to purchase 43-Airbus aircraft, including the Airbus A-319, Airbus A-320 and Airbus A-321.

"For this, the formalities relating to offset orders have already been worked out," he said, adding the Civil Aviation Ministry was discussing issues related to offset order with Boeing. AI plans to acquire eight Boeing 777-200 (Long Range), 15 B777-300 (Extended Range), 27 B787s and 18 B737-800s for its budget carrier AI Express.

India's current aviation exports is estimated at Rs 300 crore. Industry analysts say aerospace exports from India will cross to over Rs 12,000 crores in the next five years.