Rafale deal: India, France clinch offset deal; France agrees to invest 50% worth in related sectors

[DrSomnath999]

NEW DELHI: Crossing a significant milestone in negotiations for the 36-aircraft Rafale fighter deal, India and France have firmed up an understanding on the offsets segment under which the French have agreed to invest 50 per cent of the deal's worth in related sectors. The offsets deal was clinched in the last few days, people aware of the matter told ET. Even as the deal was being reached, French aircraft manufacturer Dassault had already reached out to Indian companies in the defence and security industry for possible Make in India partnerships. Estimated at $4.5 billion, or about Rs 30,000 crore, this will make it one of India's biggest-ever offsets deals.

The negotiations will move toward settling the contract for the actual aircraft sale. Since this is a government-to-government transaction, sources said, both sides will now open and examine Dassault's commercial bid. From this will flow the main negotiations on final price, lifecycle costs and other details related to the aircraft itself.

As ET had first reported on September 29, a breakthrough in the offsets deal was imminent after a top-level French team led by engineer-general Stephane Reb, director of the international directorate of the DGA (General Directorate for Armament), came to India for talks that set the stage for the final paperwork.

Following this, Prime Minister Narendra Modi met French President Francois Hollande at the UN General Assembly session in New York. Matters have moved at a rapid pace after the Defence Acquisitions Committee gave the green signal on September 1 for negotiations to start.

The deal for off-the-shelf purchase of 36 Rafale aircraft was reached during Modi's trip to Paris in April. It was stuck for over four months on pricing and offsets issues, which have been partly addressed after high-level political intervention. Both sides will eventually work out an intergovernmental agreement through which the French government will stand guarantor to all commitments that Dassault will undertake in the contract.

Read more at:
Rafale deal: India, France clinch offset deal; France agrees to invest 50% worth in related sectors - The Economic Times

Meanwhile earliear
Rafale deal: France says no to offset, yes to 'Make in India' - The Times of India
PS salle ab aaye apni aukat pe
.

 

[Donatello]

When will the contract be signed and how long will it take for local vendors and suppliers to set up their shop?

 

[Gabriel92]

Since we signed deals with Egypt and Qatar,medias over here are no longer writing something about the Rafale for India. I sometimes even forgot that India is negociating to buy it .
Everyweek they were like "India,France to sign soon the deal","The deal will be signed in less than three months","Deal to be signed very soon"."Negociations are in final stage,soon a signature".

 

[mpk1988]

Since we signed deals with Egypt and Qatar,medias over here are no longer writing something about the Rafale for India. I sometimes even forgot that India is negociating to buy it .
Everyweek they were like "India,France to sign soon the deal","The deal will be signed in less than three months","Deal to be signed very soon"."Negociations are in final stage,soon a signature".

I keep reading the same thing again and again.. Seriously.. I mean wake me up when we start flying those things..

 

[Gabriel92]

I keep reading the same thing again and again.. Seriously.. I mean wake me up when we start flying those things..

Each country has its own prestitutes.

 

[Skillrex]

Since we signed deals with Egypt and Qatar,medias over here are no longer writing something about the Rafale for India. I sometimes even forgot that India is negociating to buy it .
Everyweek they were like "India,France to sign soon the deal","The deal will be signed in less than three months","Deal to be signed very soon"."Negociations are in final stage,soon a signature".

you just wrote my thoughts.. i mean come on this is getting boring ... take it or dump it..

 

[Room]

prestitutes

So you have learnt the word famous among Indians.

 

[mpk1988]

Every country,its own prestitutes.

Stayed in India and Europe long enough to know that we have both severely been affected by these sold out media houses that sensationalises everything and there is a sickening overdose of political correctness. People don't want to say anything that might even resemble the actual situation because it might offend someone or be politically incorrect..

It's sickening.. I mean, there were 2 very unfortunate mob lynchings over the past few weeks and suddenly that's the only thing you can hear and it's the fault of the ruling govt (for once in 60 years or so this govt actually has the BALLS to do stuff).
What you won't hear about is 4-5 other incidents of murders and other activities on the majority community, because we want to be politically correct!! F*cking disgusting!!!

 

[Gabriel92]

So you have learnt the word famous among Indians.

I admit it,yes. I would have never thought about this genius word.

 

[NHUDA]

So in 2001 India allocated 8 Billion $ for Purchase of 126 Aircraft ... 15 Years on, of which after 4 years of Negotiation the cost (if 50% Offset is $ 4.5 B) , india is gonna Buy 36 Aircraft for 9 Billion $ ....

& tht too "gonna" ... as
1- The negotiations will move toward settling the contract for the actual aircraft sale.
2- both govts will now open and examine Dassault's commercial bid.
3- From this will flow the main negotiations on final price, lifecycle costs and other details related to the aircraft itself.

& even 9 B $ is not done .... as in the Link provided in OP it says:
The French government has rejected Indian negotiators' demand for a 50 per cent offset clause citing sharp cost escalation.
&
Defence sources said India's insistence on the offset clause, tweaking of weaponary technology and plans to set up two bases for Rafale fighter jets would lead to cost escalation.

"The 50 per cent offset clause was part of the original tender that was floated for 126 fighter jets. The French President and Indian Prime Minister have now decided to go in for a direct purchase of 36 Rafale jets. So, how can 50 per cent offset clause be asked when the French are offering the fighters at the same rate at which its Air Force is buying," defence sources said.
The sources said the offset clause will simply drive up the cost of each aircraft.

In short STILL a lot more to do before a contract is INKED

I guess i should hold on my Felicitations for now ... :3

PS salle ab aaye apni aukat pe
.

The reworked deal by naMo - buying 36 fighters outright (NO TOT or Make in India) was initially expected to be of 4 Billion $ .. later increased to $7.5 billion & Now 50% Offset is 4.5 Billion Means .. the Purchase would be of 9 Billion $ (tht too is not final) as Commercial Bid from Dassault is YET to be opened ... Even in this price, Guess French Played it well ....

Read more at:
Rafale deal: India, France clinch offset deal; France agrees to invest 50% worth in related sectors - The Economic Times

&

How Narendra Modi reworked Rafale deal, and why it’s a winner - The Times of India

(50% Offset of $ 7.5 Billion is 3.25 Billion, Increased the Price by 1.5 Billion while the Additional Offset Impact Only 1.25 Billion Dollars. if u turn it into %age, u will know french didn't do any favours after all ... and God Knows how much more it cost in near future and uptill delivery, we have seen cost escalation in Indo-Russian Deals very Often after signing of agreement)

 

[Path-Finder]

Since we signed deals with Egypt and Qatar,medias over here are no longer writing something about the Rafale for India. I sometimes even forgot that India is negociating to buy it .
Everyweek they were like "India,France to sign soon the deal","The deal will be signed in less than three months","Deal to be signed very soon"."Negociations are in final stage,soon a signature".

I was in my Teens When this MMRCA started and Rafale was selected. Now I am at the end of my Twenties and the deal is yet to be concreted. Not forgetting the keyboards the Digital Vedic warriors have worn out boasting about it.

lesson learned Never Boast.

 

[Abingdonboy]

I was in my Teens When this MMRCA started and Rafale was selected. Now I am at the end of my Twenties and the deal is yet to be concreted. Not forgetting the keyboards the Digital Vedic warriors have worn out boasting about it.

lesson learned Never Boast.

Wow, you've aged almost a decade in 4 years? Some vedic maths going on here.....

Since we signed deals with Egypt and Qatar,medias over here are no longer writing something about the Rafale for India. I sometimes even forgot that India is negociating to buy it .
Everyweek they were like "India,France to sign soon the deal","The deal will be signed in less than three months","Deal to be signed very soon"."Negociations are in final stage,soon a signature".

To be honest @Gabriel92 I wouldn't be taking what is written here as gospel. The media (Indian especially) have been all over the place with this deal in the past few months going from joy to despair and everything in between to the point it is abundantly clear that they either don't have a clue or all these reports are being paid by someone (even multiple parties) with vested interests. This entire circus has been orchestrated by the Indian media, if you look specifically at what the GoI/MoD has said in the past few years it is almost nothing. Yet these "unnamed sources" keep coming up and they almost always amount to nil.

As usual the Indian media have made fools out of the entire country.

 

[SR-91]

When will the contract be signed and how long will it take for local vendors and suppliers to set up their shop?

Contract By december,.......................Within 3 to 4 years locals should be ready. Govt will make sure this deal doesn't get delays like Scorpene Sub deal.

Wow, you've aged almost a decade in 4 years? Some vedic maths going on here.....

Nah Bro, they forgot to teach him math in madrassa.

 

[sathya]

9 billion $ for only 36 ? ( including set up, maintainence, training etc )

We could have bought more F35 with that money...

Of course strings remain the main obstacle .

But we did buy helis and transport aircraft, so why not ?

I can't even imagine how many gripen , F 16 , tejas , JF 17 could be bought with that money...

I am pretty sure tejas will cross 200 for that money..

Are we sure it s only 36 ? Not 48 ?

 

[Stephen Cohen]

@Abingdonboy @Gabriel92

This deal is taking up so much time and energy of both sides

That means it is going to be a BIG DEAL ; much more than 36 planes

That is the most important takeaway ; How many Rafales will we get