France Reduces Rafale Price Just a Little

[$@rJen]

France Reduces Rafale Price Just a Little
Published January 28, 2016
SOURCE: Express News Service

The French have “marginally” reduced the price of Rafale combat jets but not to the level, where the Indian Air Force is targeting to clinch the deal, said a senior official of the defence ministry. The much-talked about deal could not be inked during French President Francois Hollande’s visit due to the price issue.

Officials said India was seeking a deeper price cut and the multi-billion dollar deal could take at least another six weeks to be finalised. The price for 36 Rafales, as per the UPA tender, keeping the cost escalation and dollar rate in view, comes to over 12 billion Euros. This includes the cost involved in making changes that India has sought in the aircraft, including Israeli helmet-mounted display and some specific weaponry, among others.

“The effort is to bring down the price to around Euros 8 billion,” the sources said, adding that the actual price negotiations only started from January 21. “They have come down from the original price as per the earlier tender of the UPA but we expect more,” they said. Prime Minister Modi and Hollande had agreed to conclude an Inter-governmental agreement for supply of the aircraft “on terms that would be better than conveyed by Dassault Aviation

 

[shah1398]

The price for 36 Rafales, as per the UPA tender, keeping the cost escalation and dollar rate in view, comes to over 12 billion Euros.

I thought we were talking about price tag in US dollars and that proposed 12 Billion price was in USD

 

[kaykay]

I thought we were talking about price tag in US dollars and that proposed 12 Billion price was in USD

Deal will be signed in 9 Billiin USD. They have come to 10 Billion( in USD) while India is trying to bring that down to 9 Billion ( in USD).

 

[cerberus]

I thought we were talking about price tag in US dollars and that proposed 12 Billion price was in USD

BS news media people running for headlines
The final price was settled at 9 billion $ which is 60,000 crores

 

[shah1398]

Deal will be signed in 9 Billiin USD. They have come to 10 Billion( in USD) while India is trying to bring that down to 9 Billion ( in USD).

The news has used Euros instead of USD. Thats what i pointed at.

The final price was settled at 9 billion $ which is 60,000 crores

If it is settled at 9 billion USD then thats what India wanted. Whats the hold up now? I think that the cheapest Rafale ever sold to anyone.

 

[cerberus]

Deal will be signed in 9 Billiin USD. They have come to 10 Billion( in USD) while India is trying to bring that down to 9 Billion ( in USD).

It is already at 9billion $ dassault lobbying hard to pressurize through media
No one knows the actual price yesterday media quoting 11 billion and today its 12 billion

@PARIKRAMA predicted it that will happen eventually in finalization of deal

What is surprising to see that how our own media can be used against are own interest

 

[cirr]

12 billion euros for 36 Rafales？

India should spend 120 billion euros and buy 360 Rafales with half of which made in India。

 

[bdslph]

well there is difference lets see what the final agreement says

 

[cerberus]

The news has used Euros instead of USD. Thats what i pointed at.


If it is settled at 9 billion USD then thats what India wanted. Whats the hold up now? I think that the cheapest Rafale ever sold to anyone.

Figure India wanted was 7 billion $
But its they started it at 11 billion $ according to Mod sources

Eventually they want it high as because of the 50% offset
Other than this France will invest 10 billion $ in other projects of Make in india in 5 years you see eventually rafale is coming to us almost nil amount

They want grab bigger share of the pie in MII

12 billion euros for 36 Rafales？

India should spend 120 billion euros and buy 360 Rafales with half of which made in India。

Tomorrow it was 11 billion $ today it is 12 billion $ if you follow media in india you will be confused

Final price is some what 9 billion $ according Mod source's which 60,000 crore in indian rupees

India will pay in dollars not in euros

 

[desimorty]

12 billion euros for 36 Rafales？

India should spend 120 billion euros and buy 360 Rafales with half of which made in India。

Source: https://defence.pk/threads/france-reduces-rafale-price-just-a-little.419704/#ixzz3yWAEsIIV

That doesn't sound like Indian haggling. More like Chinese when they bought 200+ Su-27s off the shelf from Russia and than license production for J-11 which by the time of introduction was and is behind the Su-30MKI which by the way started off as semiknock down kits.
What India is trying to do is obviously get out of the purchase or reduce the price. As I recall they want 36 and with ToT.
The reason for the problem IMO is that India does not have the infrastructure or engineers. Either one or both. Have to keep people employed. Also perhaps the LCA deal is also linked to this in some case. The tools used for construction of Tejas and Rafale by design and collaboration are similar.

 

[cerberus]

@PARIKRAMA @Abingdonboy @kaykay According to my sources the the Prices are Down to 66,000 crore which 9.68 Billion $
MOD Further want to Reduce It to 59,000 crore or 8.65 Billion $

My Source is working in Top Level in CGDA (Controller General of Defence Accounts)MOD
Some officials From CGDA are also in Negotiating Body in this Deal

 

[phancong]

Oh shit deal still not sign. All the hoopla about nothing.

Another yr past by this deal still in a negotiation phase over the price.

 

[Archie]

I no longer support the Rafale

You can get 64 F/A18 Superhornets for the price of 36 Rafales

Which would be more useful

 

[cerberus]

Oh shit deal still not sign. All the hoopla about nothing.

Another yr past by this deal still in a negotiation phase over the price.

agreement Btw two Govt Already Signed During Hollande visit to India its Just Technicalities which will sorted out in few weeks As stated .My dassault in its Press Release
http://indianexpress.com/article/explained/rafales-to-form-two-squadrons-of-indian-air-force/
http://www.thehindu.com/news/nation...as-been-marginally-reduced/article8158853.ece

 

[DANGER-ZONE]

Damn 10 years back MOTHER OF ALL DEFENCE DEALS worth around $12 billion
and now only 36 aircraft worth $12 Billion ... That's such an embarrassment that even today the deal is not fully secured.

Now we can surely declare it as DADDY OF ALL DEFENCE DEALS