German-led European consortium comes up with a cheaper proposal for its Eurofighter to India

[shree835]

The world’s biggest defence deal is in danger of becoming one of the slowest in history. More than two years after India zeroed in on the French Rafale fighter jet-after a tortured 11-year selection process-to replace its ageing MiG-21s, the German-led European consortium which was the runner-up in the race has sought to restart the dogfight by offering a new, cheaper proposal for its Eurofighter Typhoon. The Narendra Modi Government, INDIA TODAY has learnt, is studying the German proposal even as Hindustan Aeronautics Ltd (HAL) has been negotiating with France’s Dassault, the maker of the Rafale, to finalise agreements to produce the aircraft in India. The Rafale deal for 126 jets is estimated to cost 20 billion euros (Rs.1.6 lakh crore) over the next decade and is considered the biggest global defence tender.

Representatives of the German government met leaders of the BJP regime in June, within weeks of the latter coming to power, and the talks culminated in a new commercial proposal that seeks to undercut the French bid. The new German offer could bring down the total value of the contract by Rs.20,000 crore over its 10-year duration. The scale of the “discount”-formally offered in early July to Defence Minister Arun Jaitley-was substantial enough to create ripples at the very top of the Government, with Prime Minister Narendra Modi also being apprised about the development, sources said.

In terms of the net present value- the hypothetical cost of buying the entire fleet in one go at current prices-the new offer is at a little more than 10.5 billion euros while the French price is estimated to be a billion euros more. Calculated on the basis of the firm fixed price-or the amount India has to pay over 10 years-the German price comes to 17.5 billion euros.

In 2012, it is believed the Euro-fighter was priced at more than 21 billion euros, a difference significant enough for the French to win the race. A long process of consultations has since been going on between Dassault and HAL to co-produce the fighter jet. Although these technical and commercial negotiations are learnt to be at an advanced stage, the contract has been hanging fire.

The German offer, which has come through Eurofighter manufacturer Airbus Defence and Space, has raised doubts over the future of the Rafale deal even though there is no scope for a revised price offer in the defence ministry’s procurement rules. Experts believe that while there is no room for renegotiating the con-tract under the rules, the size of the German discount would force the Government to take a fresh look at the price offered by France. The counter-offer is supposed to be the outcome of hectic diplomatic manoeuvring by major European powers that have a high stake in the contract due to its sheer value and the job creation potential that can boost the economy of consortium member nations.

German-led European consortium comes up with a cheaper proposal for its Euro fighter Typhoon : DEFENCE - India Today

 

[Archie]

if the Germans can cut the price of typhoon by as much as 3.5 Billion USD
i wonder how much extra are the french really charging us

considering the fact dat Rafale is generally considered to be 10 % cheaper than the Typhoon

i see another scorpene deal in the making

 

[shree835]

if the Germans can cut the price of typhoon by as much as 3.5 Billion USD
i wonder how much extra are the french really charging us

considering the fact dat Rafale is generally considered to be 10 % cheaper than the Typhoon

i see another scorpene deal in the making

Sahi Bola.

 

[GURU DUTT]

if the Germans can cut the price of typhoon by as much as 3.5 Billion USD
i wonder how much extra are the french really charging us

considering the fact dat Rafale is generally considered to be 10 % cheaper than the Typhoon

i see another scorpene deal in the making

well brother corrupt UPA had fixed the deal and had almost 10 % as "kick backs" already from the french and that was procoeslli why french had asked for indian govts garantee that the deal wont be scrapped and even now french are trying to be stubborn even when modi govt has clearli said they wont have to shell any more money for kickbacks frnch are not lowering the price tag maybe just maybe typhoon just might creep back

to my knowledge owt of 20 billion $$s almost 10-15 % was to be payed as "kick backs" of which 10% was paid when the rafale was selected (both sonia and rahul made repeted foriegn trips for the same)

 

[OrionHunter]

Well, this is a clear case of shutting the stable after the horse has bolted. WTF were the Germans doing all these years? It's too late now to renegotiate the fighter deal.

So Rafale it is!

Cheers!

 

[illusion8]

WTF were the Germans doing all these years? !

Waiting for a non Congi, non Anthony, non Sonia government to come to power.

I smell huge irregularities in the French offer, i like the Grippen offer more. India should look for 5th gen now, and to maintain force levels in the near future should develop LCA with Grippen as a partner, to justify all the money that has been sunk in the LCA program and recover it.

 

[axisofevil]

I told you all the French have a history of aiding corruption. But the tue fault lies in UPA not them. I posted Sarkozy was under charges and how his wife met with Sonia/Rahul to sway the deal. Nobody knows what was said. Now tell why this bitch Sonia go to France and speak on defence matters? Wake up you clueless f-king idiots....you want superior tech go with the German led team.....it will open up more opportunities with them.



Like I said the French fighter is dead weight

 

[Neptune]

It'd be a good option.

They offered Eurofighter with ToT with some price cuts to Turkish Air Force. But the dumbass government chose to go with Lockheed F-35A B3F instead.

 

[Sankpal]

Yes gud, france should try to close deal with india condition or we should tell them, we have other option too

 

[Nova2]

Don't know if i should be sad or happy
If france looses the deal then there will be more delays as the deal wouldn't be signed in a day,but if they win it ,then there will always be a section of audience who will be in a dilema ,if at all the deal was worth it and much is the scale of corruption in the deal.
But i wonder what would france do to sonia if the deal is scraped

 

[jaiind]

It'd be a good option.

They offered Eurofighter with ToT with some price cuts to Turkish Air Force. But the dumbass government chose to go with Lockheed F-35A B3F instead.

your govt has got money for f 35,so that is not a big deal to them to get f 35

 

[SrNair]

Another peace of BS .EU main disadvantage is its 4nation ownership .IAF mentallly prepared for Rafale.
And if these tender lost Rafale will go to cemetary.
So they will do anything to secure these deal at any cost .But these tactics will help GoI to pressure the French.
And there is no revising is available in these project.

 

[Neptune]

your govt has got money for f 35,so that is not a big deal to them to get f 35

In addition they'll increase the fund to F-35. But we see the problems Lockheed faces now with the jet. Hopefully they shall fix them all before 2017.

 

[Kompromat]

Its not world's biggest defense deal. Looks like things don't appeal to Indians till 'world's, best, biggest, baddest, or first', written next to it.

 

[jaiind]

In addition they'll increase the fund to F-35. But we see the problems Lockheed faces now with the jet. Hopefully they shall fix them all before 2017.

mate,even well reputed fighter jet makers has some issues related to cutting edge technologies for the next gen planes