The IAF, Army and the Navy require 440 choppers and these would be now manufactured within India including the HAL, private sector firms and foreign players, Defence Ministry officials said here.
The armed forces had projected their requirements to the Defence Ministry before the government scrapped a Rs 6,000 crore tender to procure 197 such helicopters for the Army and the Air Force, they said.
The Hindustan Aeronautics Limited has already started a project in Tumkur, Karnataka for building light helicopters, which will have capability to lift 2.5 tonnes payload.
The DAC decided to retract from the tender for procuring these choppers and the Indian industry would be given the opportunity to produce around 400 such choppers for the requirements of the armed forces.
In line with NDA government's plan to develop the indigenous industry, the government decision is expected to generate business worth over Rs 40,0000 crore for the local industry in the defence sector, they said.