Army aviation, till now a fledgling air operator, got a major boost on Thursday as the government cleared floating of global tenders for the purchase of 384 light helicopters.

Of these, the army aviation will get the lion`s share of 259 helicopters and the rest 125 would be inducted into the air force to replace the forces` ageing fleet of Chetak and Cheetah helicopters.

The Defence Acquisition Council (DAC) chaired by Defence Minister A K Antony cleared the contract, estimated to be worth USD 2 billion.

Under the contract, 197 helicopters would be brought off the shelf and the remaining would be assembled at HAL, Bangalore under technology transfer, sources in the defence ministry said.

In a significant step, the DAC said the deal would have a component of 50 per cent offset.

After the 126 fighter contract, tenders for which are likely to be opened this month-end, this is a second major defence deal to have a 50 per cent offset clause.

With the government expected to come out with a new defence procurement policy this month, indications are that henceforth all major deals above 500 million dollars would have a component of 50 per cent offset.

Textron-based American helicopter major bell, European arms major EADS, Russia`s Kamov and Italian Augusta Westland are expected to be the main bidders for the Indian tender.

The four helicopter manufacturers were also the bidders in the Indian Army request for proposals for 197 helicopters which was cancelled at the last moment, when officials were at price negotiation stage, as the government said the rules of procurement had been flouted by a bidder.