No softlanding in sight for $20-bn Rafale deal

[graphican]

Can somebody tell, how much money do we need to pay upfront for the deal? Media reports have been suggesting these 10 and then 20 billion USD figures for quite long. However such deals and production schedules spread over many years of delivery do work on pro-rata payment basis (essentially you pay for something, when u have it). So even if this deal is say 25 Billion USD, i don't think we have to pay more than 5-10% amount just to start production rest will follow.
In this light budget constraints might not be the actual reason for delay, it more looks like technical issues especially wrt ToT and domestic production issues.

Informed members,

What is the estimated operational cost for 126 Rafael? Any price range with margin of 50% +/- ?

 

[RKO]

Who is going to pay 25 billion for fighters only which is bigger than our neighbors total budget?

us(GoI)..

 

[Omega007]

Now this is what I call proper fucked!!

 

[Abingdonboy]

More nonsense from IDRW.........

 

[Donatello]

Bas karo nautanki kamino.

Oh bhai, teri meri zindagi mein yeh deal sign hojaye gee? Hain?

If we dont have money look for other options rather than wasting time and putting country into vulnerability.

What was the point of appropriating funds for the six new Submarines, that's a long project, 10 years from now? Better sign the MMRCA today, you have Rafale literally ready to be delivered.

 

[Abingdonboy]

Guys, let's get something very clear, the deal is NOT going to be $20-30 BN, it just isn't- this is a myth (if not a blatant lie).

3 or so months ago Jaitley was briefed on the Rafale deal:

Mr Jaitley had only one query: what is the cost of the contract?

The IAF's answer --Rs. 100,000 crore spread over 10 years -- immediately evoked a positive reaction from Mr Jaitley, sources in the Ministry of Defence told NDTV

India's Rafale Fighter Jet Deal in Final Lap, Awaits Government's Nod

That's about $15-16BN USD. The initial cost had been about $12BN USD, factoring in inflation that jump isn't bad.


If you ever see a figure higher than this then be very very skeptical be be thinking what is the real motive behind the news. The $20+ BN figure was fabricated by the Indian media many years ago and since then has become the standard figure for any lazy/paid/biased idiot reporting on this deal.

 

[Kompromat]

Yaar ab lay bhi lo warna ham larny se hi inkar kardengy

 

[thesolar65]

Any new thread on MMRCA is getting on my nerves and must be same on many Indian member's also. No body knows what the outcome will be?? Who is actually taking decision? Finance or defence ministry?

People are writing too many articles now a days. Some are for and some are against. In between some articles prop up regarding MIG-35, Grippen, F-16, Typhoon and........... JF-17!!

 

[RKO]

Any new thread on MMRCA is getting on my nerves and must be same on many Indian member's also. No body knows what the outcome will be?? Who is actually taking decision? Finance or defence ministry?

People are writing too many articles now a days. Some are for and some are against. In between some articles prop up regarding MIG-35, Grippen, F-16, Typhoon and........... JF-17!!

yeah... me too!! Im so frustrated!!!
btw JF-17 a beast in making...!!!

 

[anant_s]

Informed members,

What is the estimated operational cost for 126 Rafael? Any price range with margin of 50% +/- ?

Sir, the issue right now is we donot know what configuration IAF is negotiating along with weapon systems and avionics. The issue is further complicated by domestic production guarantees, offset clause obligations etc which will make the calculations very complex and not to mention the after sales warranties etc. Assuming we can about 18 odd birds a year through HAL, 108 planes to be produced in India will take 7-8 years and the production runs effectively through to 2025 (assuming we start by 2017) and by that time, price escalations would take the deal pricing close to 40 billion USD (atleast) almost 4 times the initially projected 10 billion.