Indian Rafale talks hit offset snag

[Yogijaat]

India is believed to have run into difficulties in its negotiations with France over the cost price of 36 Dassault Rafale fighter aircraft, which it agreed to procure after a bilateral summit in Paris on 10 April, industry sources said.

The sources said differences had emerged in recent weeks over India seeking to impose offsets of 50% on the estimated contract price of USD6-7 billion.

Indian defence minister Manohar Parrikar had said in several TV interviews in New Delhi in late May that the Rafale contract included a 50% mandatory offset obligation.

Industry sources told IHS Jane's that during negotiations, French officials had reportedly told their Indian counterparts that their "insistence" on offsets would render the Rafale deal more expensive than the price tentatively agreed upon in Paris in April.

Indian Rafale talks hit offset snag - IHS Jane's 360

 

[Manindra]

When 30% offset already a norm then what is the need of 50%
They can negotiate on some critical technology instead of menial parts.

 

[Bilal.]

It would be funny if the program that started as worth roughly $10 billion for an envisioned 126 aircrafts ends up being $10 billion for 36 aircrafts.

 

[GURU DUTT]

India is believed to have run into difficulties in its negotiations with France over the cost price of 36 Dassault Rafale fighter aircraft, which it agreed to procure after a bilateral summit in Paris on 10 April, industry sources said.

The sources said differences had emerged in recent weeks over India seeking to impose offsets of 50% on the estimated contract price of USD6-7 billion.

Indian defence minister Manohar Parrikar had said in several TV interviews in New Delhi in late May that the Rafale contract included a 50% mandatory offset obligation.

Industry sources told IHS Jane's that during negotiations, French officials had reportedly told their Indian counterparts that their "insistence" on offsets would render the Rafale deal more expensive than the price tentatively agreed upon in Paris in April.

Indian Rafale talks hit offset snag - IHS Jane's 360

looks more like EDAS is leaving no stone unturned to sabotage rafale deal in its favour .... funny thing is anty india clowns jumping up and down over such speculations

 

[surya kiran]

This is a dead deal. The PakFa will be fast forwarded with the LCA being brought in. I would wait till July 7th before jumping up and down. 3 squadrons of PakFa can be purchased by 2020. They have excess production capacity. Divert Rafale money to fund the AMCA and bring the LCA online asap.

 

[GURU DUTT]

This is a dead deal. The PakFa will be fast forwarded with the LCA being brought in.

FGFA/PAKFA just might be the real winner if russians some how can deliver them to india on fast track basis both ways its win win situation for IAF & all indians specially those on PDF

 

[[Bregs]]

The way French have went back on there words right after being rewarded wit contract in feb 2015 its not good anymore to buy from them

 

[GURU DUTT]

The way French have went back on there words right after being rewarded wit contract in feb 2015 its not good anymore to buy from them

so in short you mean even this new offer by MOD to dassualt is just another trolling

 

[[Bregs]]

so in short you mean even this new offer by MOD to dassualt is just another trolling

MOD offer is not troll but dassault has taken indian order or say compulsion to buy rafale as granted now

 

[Baloch Pakistani]

What is this offset thing means? Is that a discount or something else?

 

[GURU DUTT]

What is this offset thing means? Is that a discount or something else?

it means to set up local factories/units with indian suppliers to build some spare parts/softwares of a pertitikular ammount of % of the given deal

 

[ArsalanKhan21]

What is this offset thing means? Is that a discount or something else?

30% offset means that the France will manufacture or buy parts through cooperation 30% value of the contract in India.

 

[Donatello]

Hmm, it was supposed to be 12 billion for 126 jets in the super MMRCA
They can't even settle on the cost of 36?

 

[ArsalanKhan21]

Hmm, it was supposed to be 12 billion for 126 jets in the super MMRCA They can't even settle on the cost of 36?

India and Greece negotiate back and forth till the very last moment. India has blinked once and will blink again on Rafale deal.

 

[Echo_419]

Hmm, it was supposed to be 12 billion for 126 jets in the super MMRCA
They can't even settle on the cost of 36?

French are tough nuts