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India, France scramble to ink Rafale deal during prez visit

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Indian and French defence establishments are scrambling to seal the over $4 billion deal for 36 Rafale multi-role fighter jets in time for French President Francois Hollande’s visit as chief guest for the Republic Day parade down the majestic Rajpath.

But defence ministry sources said there was “still some distance to go” before the final Rafale contract — under which delivery of 36 twin-engine fighters in a “flyaway condition” will begin after two years – could actually be inked. This comes after the Manohar Parrikar-led defence acquisitions council on Monday reviewed progress of the final negotiations for the government-to-government fighter deal.

“It’s unlikely the actual contract will be inked during Hollande’s visit. Though all the complex technical and contractual issues have virtually been settled now, the commercial negotiations will take at least another 2-3 weeks. Then, it will require clearance from the finance ministry, and the final nod from the Cabinet Committee on Security,” a source said.

Interestingly, after some hard-nosed negotiations, France has now apparently agreed to 30% offsets in the Rafale deal. This means French companies like Dassault will have to plough 30% of the contract value back into India as offsets.

India had specified 50% offsets in the original $20 billion MMRCA (medium multi-role combat aircraft) project for 126 fighters, under which the first 18 Rafales were to be imported from France, with the remaining 108 being made by defence PSU Hindustan Aeronautics after transfer of technology.

But the MMRCA project was scrapped last year after persisting deadlock over Dassault’s refusal to take “full responsibility” for the 108 jets to be made by HAL as well as the stiff hike in its production costs here.


Concurrently, the NDA government decided to go in for direct purchase of 36 Rafales during the Modi-Hollande summit in Paris on April 10 last year, citing the IAF’s “critical operational necessity” and the need to cut time and costs.





Though France offered better terms and longer maintenance responsibility for India’s direct acquisition of 36 jets, it said 50% offsets would hike the overall cost. Under the give-and-take of negotiations, both countries have now veered around to a 30% offset clause, said sources.





While the negotiations are only for 36 Rafales, less than one-third of the 126 envisaged under the MMRCA project, the new contract will have a mandatory clause for acquisition of another 18 jets under the 50% follow-on order option at the same price. The 36 jets are to be delivered in the same configuration as were tested and approved by the IAF during extensive field trials in the MMRCA project.

@Abingdonboy Your Sources are Right its 36+18 Currently others will Under Make in India according to New DPP
 
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Hope we hget a bigger deal as per our needs lined up soon.. BTW i said that first point for 54 (36+18) and rest under MII

All Clear: India To Sign Deal For 36 Rafales This Month!!!!!!!!

I posted in same thread this today

All Clear: India To Sign Deal For 36 Rafales This Month!!!!!!!! | Page 6

Source based info

  • Support package price may force India to drop Meteor and use Astra Mk1 Mk2 as primary BVR weapons (with MICA)
  • IAF has asked MOD to specifically put a clause in IGA for French Side to guarantee that at any point of time during the whole service period of Rafales with IAF, at least 90% of the fleet should be fit for combat. (wartime and peacetime both)
  • This seems to suggest we have learned a tough lesson from MKI issues for want of spares and critical localisation.
  • French side and Dassault says such a high number will require lots of localisation and support services to be based in India for which a substantial investment is needed. Their guarantee was 80%+ at war time.
  • MOD said a "substantial fleet" will be purchased to provide comfort for the "substantial investment" but guarantee clause is 90% availability at all times.
  • The localisation and inhouse spare and major repair hub in India is desired for ensuring this high number and will become benchmark for future acquisition
  • This is the major clause which required repeated negotiations as the substantial fleet wording seems to suggest MOD has clearly given the indication to French side what number they are looking at.
  • Also localisation, spares, services, major repair hub all indicate towards the inevitable long run target of a line in India
 
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We have already heard this a million times before.
 
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And what is the use of this deal for Indian forces? What will the Indian Air Force do with these planes anyway? Fly them over parades and do endless exercises?
As @MilSpec called, we need more printers etc. Or perhaps tissue paper will also do fine. :agree:
 
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Rafale : dernière ligne droite pour le contrat indien, Aéronautique - Défense

Source: LESECHOS

Burst: final stretch for the Indian contract

  • After a hard bargain, India would get that compensation granted by France totaling at least 50% of the contract value
  • In fact, for any public order abroad, the Indian government has a sophisticated system of "off-set", with adjustment coefficients that evaluate the commitments made on a definite schedule.
  • For example, the technology transfer to the automation system will be much better noted that the training of future Indian pilots the Rafale.
  • Dassault and Safran and Thales partners must be specific enough on forms of future partnerships with the Indian aerospace industry, especially the Indians wishing to improve their skills in this area rather than getting "off-sets" targeting other industries or services as is often done on large export contracts. (LCA TOT instead of standard offsets)
  • French manufacturers will have even more interest they hope that this order will be only a first step, India needing 150 combat aircraft. "There will inevitably be a second, but it n 'is not yet defined, "recently said Eric Trappier, CEO of Dassault Aviation

@Vauban @Abingdonboy @Taygibay
 
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LoL on you when 25th comes :lol: And LoL on PAF for waiting to see and react... so we did troll the PAF and pakistani pdf members:lol:

LOL Don't be pathetic. Talk about trolling, all it took was a couple of posts to get the Indians steaming in this topic. :lol:
 
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LOL Don't be pathetic. Talk about trolling, all it took was a couple of posts to get the Indians steaming in this topic. :lol:

And just a Title of this thread took a Pakistani to troll and whine at this thread :rofl::lol: Lol..... PAF had to wait for IAF to pick a fighter and react.. which is going to be banging its head on the wall, while poor pakistanis like you would want to troll on it:lol: How pathetic
 
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For god's sake,have this deal sealed asap。

And instead of going for a mere 36 planes, India should at least buy 136, preferably 336.
 
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