Rafale Jet Deal with France Next on Modi Government's Radar

[SR-91]

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NEW DELHI: After clearing defence acquisitions of over Rs 1 lakh crore, the much awaited multi-billion French Rafale combat aircraft deal is expected to be next on the agenda for the Narendra Modi Government on defence procurement.

According to a top official of the Ministry of Defence (MoD) privy to the development, over two years of negotiations between French firm Dassault and the Ministry is almost complete and a decision is likely to be taken soon, for which a voluminous draft agreement of over 15,000 pages between the Dassault and IAF has already been prepared.

“The contract negotiations committee has almost completed its task and would submit its report very soon. And we expect a final decision on the deal by the end of next month,” said a top official from the Ministry. A source said a decision is likely after Defence Secretary RK Mathur returns from the US. Meanwhile, French Ambassador S E M François Richier said here, “The negotiations are progressing well.” Recalling that there were statements made by Indian defence officials in the recent past about the progress and recent visit by the CEO of French Dassault Aviation SA, makers of Rafale, Richier added, “It is a signal that it is moving in the right direction.”

Although Rafale was declared lowest bidder in January 2012, the deal has not been inked so far due to cost escalation. And the cost negotiation committee, which was set up in February 2012 to work out the modalities for the deal, has not reached a conclusion after 30 months of negotiations.

An official said, “The final negotiation for the upgradation of Mirage took three years. This is a very big contract, complex,” he said adding, “it takes time”.

Recently, during French Foreign Minister Laurent Fabius’ visit to India in July, New Delhi had raised serious concerns over cost escalation of the fighter jet deal.

Officials claim that in 2007, when the tender was floated, the cost of the programme was $12 billion (Rs 42,000 crore). When the lowest bidder was declared in January 2012, the cost of the deal shot up to $18 billion (Rs 90,000 crore). And now with inclusion of transfer of technology, life cycle cost and creating Assembly line, the deal has crossed a whopping $20 billion.

The Air Force is seeking to replace its ageing MiG-21s with a modern fighter and MMRCA fits between India’s high-end Sukhoi-30MKIs and its low-end Tejas LCA lightweight fighter.

Rafale Jet Deal with France Next on Modi Government's Radar -The New Indian Express

 

[Gandhiv]

French will get a massive xmas gift ,
If I was the decision maker I would have never released the funds for this project.
Its too much expensive India would have gone with a couple of more Super MKIs till LCA MK2 came online.

LCA MK2 more of less matches every requirement for MRCA.

 

[axisofevil]

Thank you UPA for sitting on you ***...

 

[duhastmish]

Too bloody expensive must include other option such as typhoon and mig

 

[jugad]

Too bloody expensive must include other option such as typhoon and mig

Its almost a DONE deal. So no use hoping for an alternative outcome

 

[SrNair]

French will get a massive xmas gift ,
If I was the decision maker I would have never released the funds for this project.
Its too much expensive India would have gone with a couple of more Super MKIs till LCA MK2 came online.

LCA MK2 more of less matches every requirement for MRCA.

LCA MK2 is nothing in front of Rafale.

 

[C130]

what's the point of picking the lowest bid when the price can actually keep going up and up way beyond in the end

 

[duhastmish]

Its almost a DONE deal. So no use hoping for an alternative outcome

Bhai ye kisi ke baap ka paisa nhi hai.

Govt must look for money part and it will. There is no way price can escalate so rapidly
india looking at history always escalate order. So that might be considered

 

[Koovie]

French will get a massive xmas gift ,
If I was the decision maker I would have never released the funds for this project.
Its too much expensive India would have gone with a couple of more Super MKIs till LCA MK2 came online.

LCA MK2 more of less matches every requirement for MRCA.

LCA MK1 is not even operational and you talk about a plane that has not even taken off? You cant compare a paper plane with the most advanced operational 4.5 gen fighter made by one of the most experienced and famous aircraft manufacturers.

 

[thesolar65]

what's the point of picking the lowest bid when the price can actually keep going up and up way beyond in the end

It is our habit, be it road construction, bridge construction etc.. everything in every state of India. Once a tender (even simple ones) comes out in any central or state govt. the tender process takes up to three months, then the L1 is awarded. Then the work order is issued after quite a long time, then there is so many file work from one table to another, so many under table job.

After that when the work starts, there always a clause of price increase, court cases sometimes and that is bound to increase owing to the long time taken.

It happens because of delay in taking decisions.

 

[axisofevil]

Are you aware Israel has over 300 F-16's in their inventory? The plan on retiring it and adding over 100 F 35 II's to their inventory!

 

[Tangent]

F-35 may be cheaper than Rafale..and it is not French..

 

[Abingdonboy]

F-35 may be cheaper than Rafale..and it is not French..

It is not going to be cheaper than the Rafale, what nonsense.


And no it is not French, worse yet it is American...

Are you aware Israel has over 300 F-16's in their inventory? The plan on retiring it and adding over 100 F 35 II's to their inventory!

What's your point?

 

[axisofevil]

It is not going to be cheaper than the Rafale, what nonsense.


And no it is not French, worse yet it is American...


What's your point?

We looking to add 120 4th gen aircraft with no clue when the FGFA will be ready. India's doctrine of no getting too close is going to bite it in the *** at some point.

 

[Abingdonboy]

We looking to add 120 4th gen aircraft with no clue when the FGFA will be ready. India's doctrine of no getting too close is going to bite it in the *** at some point.

The IAF isn't going to be interested in second hand aged jets coming to the end of their lives, the same jet that who's more advanced version was found to not meet their technical criteria. The Rafale is going to be ordered at the end of this year along with a further 63 at some point thereafter- end of story.

The truth is the FGFA project is a necessity and all those writing it off based on media reports from paid/biased/ignorant media need to cool it.

And for the last time the IAF can easily afford both the FGFA and MMRCA (the latter not costing anywhere near $20 Billion).