200 LCA,50% of Rafale deal value will be invested in India: Defence Minister Manohar Parrikar

[Optimos Prime IA]

50% of Rafale deal value will be invested in India: Defence Minister Manohar Parrikar

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11 May, 2015, 0135 hrs IST, MEERA MOHANTY & Manu Pubby, ET Bureau

France will need to spend 50% of the contract value, almost four billion dollars, as investments in the Indian defence and aerospace sector.
NEW DELHI: Terrorists, irrespective of wherever they may be operating from, should be neutralised using all types of methods, Defence Minister Manohar Parrikar told ET in an exclusive interview. He elaborated that "neutralisation" doesn't necessarily mean killing terrorists but making them "ineffective."

Parrikar also criticised ex-BJP ministerArun Shourie, saying the latter "does not have the full brief on what is happening". Shourie had recently said the Narendra Modi government was faltering on policymaking and delivery.

Responding to a question on how India should deal with terrorists in foreign territory, the defence minister said: "A terrorist has to be neutralised-...Certain issues cannot be discussed but I feel that for any enemy of the country, all types of methods should be used to neutralise them."

"Neutralising does not mean just killing...it means any method that makes them non-functional - get him to jail or to make him ineffective in any manner," Parrikar added.

In his wide-ranging interaction with ET covering several key policy areas, Parrikar also set out the exact figure on India's manufacturing share of the Rafale fighter jet project - France will need to spend 50% of the contract value, almost four billion dollars, asinvestments in the Indian defence and aerospace sector. The minister said the Rafale jet project will "unleash Make-in- India".

Parrikar also said that with India buying around 36 Rafale jets for now, government savings on this project is likely to be up Rs 60,000-65,000 crore. This money, Parrikar said, will be used to accelerate defence manufacturing in India, including speeding up the long-ingestation Light Combat Aircraft. The minister said LCA will be inducted in large numbers, up to 200 fighters or 10 squadrons.

Parrikar linked low levels infiltration from Pakistan and fewer incidents of cross-border firing this year to Indian forces' strong retaliation to "misadventures".

Acknowledging that defence forces face an issue on resources, the minister said all three wings, army, air force and navy, must prioritise spending. All three wings have been asked to make a list of must-have items, Parrikar said. He said Defence Research and Development Organisation (DRDO) would have a new head by May 24.

DRDO will also have a separate Scientific Advisor, who will be attached to the ministry for independent advice. Parrikar said for important projects he will form consortiums of all stakeholders from the government system, it won't be just DRDO taking all the critical decisions.

50% of Rafale deal value will be invested in India: Defence Minister Manohar Parrikar - The Economic Times

 

[Agent_47]

I have a feeling this is going to get messy... again. #MMRCA 2.0

Parrikar also said that with India buying around 36 Rafale jets for now, government savings on this project is likely to be up Rs 60,000-65,000 crore. This money, Parrikar said, will be used to accelerate defence manufacturing in India,

@sancho this does not look good.
This is clearly false promising.
How can dassult invest 50% and deliver 36 jets in 2 years !?
What is it do LCA project with the saved money?development money is already committed.

 

[Optimos Prime IA]

So total deal for 36 Rafael is 8 billion $ .France will invest 4 billion $ in setting up infrastructure in India .Most probably for future orders.Or opening up second supply chain .

India will induct 200 LCA . 10 squadron with 20 jets each . SO NO MORE GRIPIN TALKS

Massive retaliation incase of ceasefire violation by Pakistan

Change in DRDO leadership and independent advisor to be formed

Arms shortage will be addressed . As all three forces are preparing 'Must Have Weapons list'

Dismantling of terror groups inside Pakistan is in full swing . Any leans will be used to neutralize .

Arun Shorie shown his place for blabbering something which he is not aware of ...

I have a feeling this is going to get messy... again. #MMRCA 2.0

Parrikar also said that with India buying around 36 Rafale jets "FOR NOW" and France investing 4 billion USD !!! I think its MMRCA 2 but gonna be successful with few more orders like another 34

 

[saurav]

France might be persuaded to invest 50% of value in something we need. It may not be a production line for Rafale.

 

[Agent_47]

Parrikar also said that with India buying around 36 Rafale jets "FOR NOW" and France investing 4 billion USD !!! I think its MMRCA 2 but gonna be successful with few more orders like another 34

Look at the second statement , "saving 60,000-65,000 cr "
Considering that L1 bid for 126 rafale is 90,000cr then, the remaining 25,000-30,000 is the price for 36 rafales.
So,Second statement negates the " FOR NOW " part.
50% of the contract will be $2 billion not $4. That is just another offset, brings nothing substantial compared to original MMRCA RFP to the industry.

#MMRCA is really dead. It kinda feel sad after all these years of waiting.

 

[Suman]

I wish sets up a another production house in India for all the orders in the east.

 

[Donatello]

CAG of India likes this.

 

[magudi]

.

#MMRCA is really dead. It kinda feel sad after all these years of waiting.

But we knew that already didn't we? Chances of another tender also looks very bleak for now

 

[thesolar65]

CAG of India likes this.

BTW, who audits Pakistan's economy or Income, expenditure of Govt., Army etc??

 

[magudi]

BTW, who audits Pakistan's economy or Income, expenditure of Govt., Army etc??

TTP is not in list?

 

[ito]

200 LCA is a tall order...given the way LCA project is moving...

 

[GORKHALI]

BTW, who audits Pakistan's economy or Income, expenditure of Govt., Army etc??

They got PWC and E&Y for this...Sarcasm indeed

 

[Optimos Prime IA]

Look at the second statement , "saving 60,000-65,000 cr "
Considering that L1 bid for 126 rafale is 90,000cr then, the remaining 25,000-30,000 is the price for 36 rafales.
So,Second statement negates the " FOR NOW " part.
50% of the contract will be $2 billion not $4. That is just another offset, brings nothing substantial compared to original MMRCA RFP to the industry.

#MMRCA is really dead. It kinda feel sad after all these years of waiting.

Dude MMRCA dead already . This is new deal made on Government to Government agency. 36 jets for 8 billions including Training , logistic support , technical assistance , weapon system etc . More over 50% offset clauses is been used in this cade . Which I think highest of all defense offset .

To break in simple terms 1st batch will be only by 2017/18 .By that time we will have enough money for additional 34 jets most probably by 2020/21. So its a good move . Better than throwing all our money for now . We need to spend on various front .

 

[IndoUS]

200 LCA is a tall order...given the way LCA project is moving...

I am going to take a guess that these would be MKI and MKII (whenever we get it) since there is no point in getting MKI in such a large number. The SU30MKI and Rafale would be more than enough for now, the low end aircraft can be filled with a mix of MKI and MKII though I really don't wish to have MKI in larger numbers, I want the MKII to inducted in place.

 

[Nityam]

Parrikar also said that with India buying around 36 Rafale jets "FOR NOW" and France investing 4 billion USD !!! I think its MMRCA 2 but gonna be successful with few more orders like another 34

That seems to be right.

ONCE Dassault invests 4 billion $ in India for manufacturing Rafale, THEN India will order for more Rafale. So there is NO way Dassault can weasel out of it and they wll be under pressure to implement the Make in India in a hurry to garner more orders.

Order more ONLY when 50% of Rafale is made in India.

Unlike the P-8I and C-17 deal I may add.