Defence Ministry sources said.
The deliveries of the Spyder missiles will begin in 2½ years and be completed within four, the ministry official said.
The contract will not include any mandatory defense offsets, the official said.
The Israeli-developed Spyder system is based on Rafael's Python 5 passive infrared and Derby active radar-guided air-to-air missiles, with an effective range of 15 kilometers. The system uses an Elta search radar, an Indian Air Force official said. The system is built as a quick-reaction surface-to-air missile defense system against aircraft, UAVs, and even precision-guided missiles, according to the makers.
The request for proposals was sent in mid-2005 to France, Israel, Poland, Russia, South Africa, Switzerland and the United Kingdom.
India began looking to foreign firms after the Trishul LLQRM system developed by its state-owned Defence Research and Development Organization was rejected by the Army, Navy and Air Force.
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