BENGALURU — India expects to sign a contract to purchase up to 126 Dassault Rafale fighters by the middle of this year, the country’s air force chief says, trying to put to rest speculation that recently announced budget cuts could delay the acquisition. The government has cut defense spending for its current fiscal year ending March 31 by about 5% from the originally allocated 1.93 trillion rupees ($38.6 billion), mainly due to the ongoing economic downturn (Aerospace DAILY, Feb. 7).

BENGALURU — Eurocopter says it will establish a production facility in India to manufacture its AS550 C3 Fennec helicopters if it wins a contract to supply the helos to India’s army and air force. The European company is vying with Russia’s Kamov 226 Sergei for an estimated $2 billion deal to supply 197 helicopters to the Indian defense forces. Of the 197 helos, the Army is likely to get 133 and the Air Force 64.

India’s state-run Hindustan Aeronautics Ltd. (HAL) is about to expand into civil aviation, the company’s top official says. According to HAL Chairman R. K. Tyagi, India authorities have asked the company to take a primary role in the proposed $14 billion national civil aircraft program to develop a regional transport aircraft. The same authorities also want HAL involved in the design, development and manufacture of unmanned aerial systems.