The Indian Air Force is a step closer to acquiring Boeing AH-64 Apache attack helicopters and Chinook heavy lift helicopters as the two deals are expected to come up for approval at the first meeting of the Defence Acquisition Council to be held under the new government later this month.

Sources said price negotiations are in the final stages and the two contracts will be ready to be placed before the highest decisionmaking body of the Defence Ministry on July 19 before they are cleared by the Cabinet Committee on Security.

India plans to acquire 22 Apache and 15 Chinook helicopters. Each of the contracts is likely to be worth more than a billion dollars. Much of the spade work on the contracts was completed around six months ago. Some key issues, particularly fixing the offset liabilities on aircraft maker Boeing, were finalized in recent weeks. The Defence Ministry had completed discussions for purchasing 15 CH-43D Chinook helicopters last year but the final decision could not be made because of the sudden death of a key officer handling the negotiations. The Chinook helicopters are expected to cost around Rs 7,000 crore.

Both Apaches and Chinooks are a distinct symbol of America military power. The IAF preferred the two platforms over the traditional Russian options it has been using.

The IAF will get attack helicopters, overcoming resistance from the army which wants to raise its own lethal rotor wing fleet. The government intervened to allow the IAF to acquire the 22 Apaches and any follow-on purchase will be for the army, whose aviation wing is proposed to be significantly strengthened.

The Apaches will replace Russian Mi-25/35 helicopters. The US helicopters were selected over Russian Mi-28N in 2012. The Russians also lost out to the US in the race to sell heavy lift helicopters. The IAF preferred the Chinook over the Mi-26T2.

The Defence Acquisition Council, headed by the Defence Minister, has not met after the formation of the NDA government. This will be the maiden meeting under Defence Minister Arun Jaitley and a number of proposals are lined up for clearance.

The new government has signalled its intent to speed up decisions to accelerate the defence modernization programme despite constraints imposed by an economic slowdown. The DAC's meeting will be held days after the presentation of the general budget on July 10.