For the first time since January 31, 2012, when the French
Rafale fighter was chosen as the future medium multi-role combat aircraft (
MMRCA) for the Indian Air Force (IAF), it has been officially admitted that there are serious problems in negotiating the purchase with the French vendor,
Dassault. the Indian
Business Standard.reports.
Speaking to the media on Tuesday evening, Defence Minister
Manohar Parrikar said there were “complications” in the negotiations, already on for almost three years, with the French side reluctant to meet commitments that IAF had specified in the tender. Parrikar mentioned that local production of Su-30 MKI by HAL would be adequate for the Indian Air Force (IAF) in case India will not procure the Rafale.
Past reports cited the reluctance of the French side to assume responsibility for the local production of 108 Rafales by Hindustan Aeronautics Ltd (HAL), mandated by the tender.
The IAF currently plans to have 272
Su-30MKI fighters by about 2018. HAL’s Nashik production line is building the fighter at $56 million each (358 crore Inr.), less than half the estimated cost of the Rafale.
In another reversal of previous ruling, Parrikar reiterated his intention to permit foreign arms companies to station “representatives or technical consultants” in India. India imposed a ban on ‘agents’ that after the Bofors gun scandal of 1987-88.
“Changes will be made to the Defence Procurement Policy. Company representatives will be allowed but commission, or percentage of profit for the deals will not be allowed.” Parrikar said, adding that representatives have to be registered with the ministry and remuneration shall be declared by the company.
According to
The Tribune, a draft of the changed policy is ready and the final draft will be ready in the next few days and the process will be completed in 45 days. “The interests of the military would be taken care off” Parrikar declared. The Minister gave an example that Bharat Earth Movers Ltd (BEML) has been allowed to deal with the original Tatra company and not Tatra UK, which was banned following allegations of kick-backs.
India mulls switching from Rafale to Su30MKIs | Defense Update: