PARIKRAMA
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Analysis: Rafale Cost as per sources and news publications
I have written here the costs of Rafales to be all inclusive around $118 Mn (+/- 5%).
Pls see this analysis and supporting news bytes
Firstly, Euro/USD = 1.08, Euro/INR = 72.98 and USD/INR= 67.57
Secondly this excerpt,
"Currently the cost per aircraft is above Euro 100 million which translates to about Rs. 800 crore along with the weapons package"
So Rs 800 Crs/72.98 = Euro 109.62 Mn or $ 118.39 Mn
Thirdly, i also said about MII part bcz IAF and IN order potentially can be as big as Fr AF order over time and will be in the range of 300+ Rafales. I also said bcz the manpower costs of Merignac plant is higher as compared to Indian manpower costs, the cost advantage offers a significant benefit for establishing a line in India and bringing the costs of Rafale down. This in turn makes it very attractive for exports.
See this excerpt , right what Prez Hollande has quoted
"The Rafale is a major project for India and France. It will pave the way for an unprecedented industrial and technological cooperation, including 'Make in India', for the next 40 years."
Fourthly, sources indicate India and France will tie up for AMCA project. The discussion has been initiated and when the news comes out i will post it surely. But bear it in mind, the GE lobby and USA consultancy is also on offer for AMCA project.. But with Dassault technology and help in LCA specifically naval variant coming, the
chances of AMCA tie up with France looks more attractive. I will wait for final decision making but hopefully it works out as per logic and strategic angle..
Once the Rafales are made in India all inclusive cost with weapons should be around Rs 500-600 Crs. The larger the order the lower Rs 500 Crs or even less would be realized. Or else the worst should be Rs 600 Crs. The median expectation is around Rs 540 Crs fully loaded.
Fifthly, the rafale M needs orders or else in another 8-10 years it will be out of new orders. Indian Navy is the potential biggest user for this jet. And hence there is a much bigger scope that Rafale M line would be permanently based out of India only. Again with time i will attach news reports confirming this theory.
So here are the articles link and excerpts
+++++++++++++++++++++++++++++++++++
Talks on for Rafale pact
DINAKAR PERI
officials say the final deal is unlikely to be concluded during French President Francois Hollande’s India visit due to differences over pricing. With French President François Hollande scheduled to arrive in India on January 24 as the chief guest for the Republic Day parade, India and France are holding hectic discussions to conclude the government- to-government (G-to-G) agreement for the direct purchase of 36 Rafale fighter jets.
Speaking to the media in New Delhi on Friday, French Ambassador Francois Richier termed them “complex negotiations”, and said he was “hopeful” of an agreement.
However, officials say the final deal is unlikely to be concluded during the visit due to differences over pricing.
A senior government official said that efforts are on to reduce the price by 20 per cent. Currently the cost per aircraft is above Euro 100 million which translates to about Rs. 800 crore along with the weapons package.
In comparison a Sukhoi-30 MKI aircraft which India is assembling through technology transfer from Russia costs less than half, raising questions on the cost.
A French team of government and Dassault officials has been in Delhi for the last few days carrying out talks with their Indian counterparts. In addition, Dassualt CEO Eric Tripper and other French defence industry heads are accompanying Mr. Hollande to India.
Speaking in Paris last week, French Defence Minister Jean-Yves Le Drian hoped that the deal could be concluded during the visit.
India-France talks on for Rafale pact - The Hindu
+++++++++++++++++++++++++++++++++++
Some snippet
Q: France is a major defence supplier to India and the Rafale fighter jet deal announced during Prime Minister Modi's visit last year is a reflection of that. Do you hope to see the final deal inked during your stay in India?
Ans: Our cooperation on defense is part of our strategic partnership. It is based on trust, a very strong trust between both our countries. The Rafale is a major project for India and France. It will pave the way for an unprecedented industrial and technological cooperation, including 'Make in India', for the next 40 years. Agreeing on the technicalities of this arrangement obviously takes time, but we are on the right track.
Rs 60,000-crore Rafale jet deal on "right track": French President Francois Hollande - The Economic Times
+++++++++++++++++++++++++++++++++++
@Abingdonboy @Vauban @anant_s @MilSpec
I have written here the costs of Rafales to be all inclusive around $118 Mn (+/- 5%).
Pls see this analysis and supporting news bytes
Firstly, Euro/USD = 1.08, Euro/INR = 72.98 and USD/INR= 67.57
Secondly this excerpt,
"Currently the cost per aircraft is above Euro 100 million which translates to about Rs. 800 crore along with the weapons package"
So Rs 800 Crs/72.98 = Euro 109.62 Mn or $ 118.39 Mn
Thirdly, i also said about MII part bcz IAF and IN order potentially can be as big as Fr AF order over time and will be in the range of 300+ Rafales. I also said bcz the manpower costs of Merignac plant is higher as compared to Indian manpower costs, the cost advantage offers a significant benefit for establishing a line in India and bringing the costs of Rafale down. This in turn makes it very attractive for exports.
See this excerpt , right what Prez Hollande has quoted
"The Rafale is a major project for India and France. It will pave the way for an unprecedented industrial and technological cooperation, including 'Make in India', for the next 40 years."
Fourthly, sources indicate India and France will tie up for AMCA project. The discussion has been initiated and when the news comes out i will post it surely. But bear it in mind, the GE lobby and USA consultancy is also on offer for AMCA project.. But with Dassault technology and help in LCA specifically naval variant coming, the
chances of AMCA tie up with France looks more attractive. I will wait for final decision making but hopefully it works out as per logic and strategic angle..
Once the Rafales are made in India all inclusive cost with weapons should be around Rs 500-600 Crs. The larger the order the lower Rs 500 Crs or even less would be realized. Or else the worst should be Rs 600 Crs. The median expectation is around Rs 540 Crs fully loaded.
Fifthly, the rafale M needs orders or else in another 8-10 years it will be out of new orders. Indian Navy is the potential biggest user for this jet. And hence there is a much bigger scope that Rafale M line would be permanently based out of India only. Again with time i will attach news reports confirming this theory.
So here are the articles link and excerpts
+++++++++++++++++++++++++++++++++++
Talks on for Rafale pact
DINAKAR PERI
officials say the final deal is unlikely to be concluded during French President Francois Hollande’s India visit due to differences over pricing. With French President François Hollande scheduled to arrive in India on January 24 as the chief guest for the Republic Day parade, India and France are holding hectic discussions to conclude the government- to-government (G-to-G) agreement for the direct purchase of 36 Rafale fighter jets.
Speaking to the media in New Delhi on Friday, French Ambassador Francois Richier termed them “complex negotiations”, and said he was “hopeful” of an agreement.
However, officials say the final deal is unlikely to be concluded during the visit due to differences over pricing.
A senior government official said that efforts are on to reduce the price by 20 per cent. Currently the cost per aircraft is above Euro 100 million which translates to about Rs. 800 crore along with the weapons package.
In comparison a Sukhoi-30 MKI aircraft which India is assembling through technology transfer from Russia costs less than half, raising questions on the cost.
A French team of government and Dassault officials has been in Delhi for the last few days carrying out talks with their Indian counterparts. In addition, Dassualt CEO Eric Tripper and other French defence industry heads are accompanying Mr. Hollande to India.
Speaking in Paris last week, French Defence Minister Jean-Yves Le Drian hoped that the deal could be concluded during the visit.
India-France talks on for Rafale pact - The Hindu
+++++++++++++++++++++++++++++++++++
Some snippet
Q: France is a major defence supplier to India and the Rafale fighter jet deal announced during Prime Minister Modi's visit last year is a reflection of that. Do you hope to see the final deal inked during your stay in India?
Ans: Our cooperation on defense is part of our strategic partnership. It is based on trust, a very strong trust between both our countries. The Rafale is a major project for India and France. It will pave the way for an unprecedented industrial and technological cooperation, including 'Make in India', for the next 40 years. Agreeing on the technicalities of this arrangement obviously takes time, but we are on the right track.
Rs 60,000-crore Rafale jet deal on "right track": French President Francois Hollande - The Economic Times
+++++++++++++++++++++++++++++++++++
@Abingdonboy @Vauban @anant_s @MilSpec
