Yes we end up again in MMRCA.. lol
BTW i may give you another angle in price..
India, France Inter-Governmental Agreement on Rafale Purchase Likely Next Week
India, France Inter-Governmental Agreement on Rafale Purchase Likely Next Week
Source : Our Bureau ~ Dated : Saturday, August 29, 2015 @ 10:28 AM
France and India are expected to sign an inter-governmental agreement on the purchase of the Dassault Rafale fighter aircraft next week.
French Defense Minister Jean-Yves Le Drian is expected to arrive in Delhi August 31 and will hold talks with his Indian counterpart Manohar Parrikar before signing the inter-governmental agreement on Tuesday, various media reported.
The inter-governmental agreement does not mean that the deal is through. The two sides still have to conclude a commercial contract for the deal to get underway.
Defenseworld.net reported last week that that the French Defence Minister was expected in Delhi in the week starting August 31 to sign an agreement on the Rafale deal.
In April, Indian Prime Minister Narendra Modi and French President Francois Hollande agreed to fast-track the Rafale procurement by buying 36 French-built Rafale fighters with no manufacturing in India.
Unnamed sources quoted in the Indian media said that talks were still on with the negotiating committee considering the 50 per cent offset requirements, as well as the arms and equipment the fighters will be fitted with.
The unit price of the 36 Rafale aircraft was 25 percent higher than the $200-million price tag offered to the Indian prime minister during his April visit to France, the Times of India reported yesterday.
Sources quoted in the French media reported that higher price was because the Indian Air Force (IAF) was asking for a different set of armaments than what was proposed under the earlier RFP route and that Indian wanted offsets which would push up the final cost.
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Thus its another IGA and not a contract. BUT IGA means a done deal off course..
The cost negotiations is still perhaps a point of discussion
The price of Rafale offered is $ 200 million (same as FAF as LCC/40 years) + 25% which is US$ 250 million a plane (for customization and perhaps 50% Indian offsets).
Interestingly this article gives cost as
36x250 = $9Bn with 50% offset meaning 4.5 Bn investment back into India
Now a fellow blogger (courtesy picdelamirand) explains this number as
$ 250 millions is with life cycle cost for 40 years.
You will have 160 Millions for life cycle cost, on which $125 Million will be done by Indian so the 50% offset is fulfiled.
The possible payment will be like that:
300 Millions in 2017
1 Billion in 2018
1 Billion in 2019
1 Billion in 2020
400 Millions in 2021
And 270 Millions by Years for Operational costs after 2021 until 2060.
I said 160 Millions for life cycle cost so it remain 90 Millions for the Rafale but fly away cost is 73 Millions so there is 17 Millions for weapons. It's not a lot but you already purchase a lot of MICA with the upgrade of Mirage so you don't need a lot because you want to adapt russian weapons.
Thus the 5Bn dollar thing went up suddenly in a new article as 9Bn but still the price explaination by pic seems legible
@Abingdonboy i am sure you may say better wait for final signing to know all this numbers !!!
We again end up with MMRCA lol 
