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.

BENGALURU — India is trimming defense spending for its current fiscal year, which ends March 31, but Defense Minister A.K. Antony says spending on operational preparedness will not suffer. “The government is passing through a difficult phase. The recession is affecting us. There will be a cut in the capital and revenue budget. However, we will not cut the expenditure on operational preparedness,” Antony said Feb. 6 at the kickoff of the 9th Aero India exposition in Bengaluru.