Representatives for the state-owned defense enterprise say both parties are finalizing the terms of the contract. Under the current draft, 140 of the rotorcraft will be built in India. The remaining 60 will be supplied by the company's existing facilities in Russia.

"We are now discussing terms and conditions for the contract and copter configuration," Russian Helicopters deputy CEO Igor Chechikov told Indian media.

"We expect to produce more helicopters from India, given the country's demand for a wide range of defense and security related equipment."

The move supports Prime Minister Narendra Modi's "Make In India" initiative, an effort to boost domestic economic output.

Once a contract is finalized, Russian Helicopters will work alongside Hindustan Aeronautics Limited to deliver the rotorcraft to the Indian government.

India already operates more than 450 Russian-made helicopters, all of which were delivered over the past three decades. ■