WASHINGTON, June 30: US aircraft manufacturers are eyeing a lucrative multi-billion dollar deal with India, which they say will be the world’s biggest contract for combat planes in 15 years.

The India’s Defence Ministry announced on Friday it is seeking bids for the acquisition of 126 fighter jets and is expecting solicitations from leading US, Russian and European manufacturers.

Lockheed Martin Corp., a leading US aircraft company, calls it the world’s biggest combat planes deal in 15 years, estimated to generate $9billion to $10 billion.

The proposed contract seeks an initial cadre of planes in fly-away condition followed up by the bulk of the aircraft to be produced in India under a technology transfer with the foreign supplier linking up with an Indian partner.

Hindustan Aeronautics Ltd. already produces Russian-made MiG and Sukhoi jets in India under a technology transfer and license agreement.

Lockheed Martin and Boeing Co., the two biggest US military contractors, are competing against Russia’s MiG Corp., Eurofighter GmbH of Europe, Sweden’s Saab AB and France’s Dassault Aviation SA.

Lockheed Martin will bid for the contract with its F-16 fighter jets and Boeing will offer the F-18 jets. Both are willing to sign technology transfer agreements with India.

The chosen manufacturer will have to provide lifetime support and performance based warranty for the 126 planes, which are likely to be in service for 40 years.

US defence major Raytheon is offering its sophisticated AESA radar to support the US’s efforts to pitch the F-16 and F-18 combat jets to India.

Unlike conventional radars, AESA radars can track dozens of targets on the ground and transmit the information to ground stations and other aircraft to provide a near real time picture of the battlefield. They can also be used in an electronic warfare role.

The Indian Air Force is already the world’s fourth-biggest, with 120,000 personnel and 1,700 aircraft, mostly MiGs. But Indian officials say that the IAF is at a point where an upgrade of its jet fighter fleet is needed. Its aging MiG-21s are retiring in 2009 and the IAF is expected to be down to 29 operational squadrons at that time compared to an authorized strength of 43 squadrons.