French Delegation to Visit Indian to Salvage the Rafale Jet Deal

Published By : 15 Jan 2015 | Published By : QYRESEARCH

In a bid to salvage an important defence equipment deal, French delegation will arrive in New Delhi this month. The deal in question happens to be the world’s biggest defence deal, inclusive of a supply of about126 Rafale fighter jets to Indian Air Force. Over the past few months, the deal has been facing a few challenges due to the local assembly of the planes.

The Indian defence ministry officials stated that Dassault Aviation, the French company should completely takeover the responsibility of aircraft production at the Bangalore facility as per the initial offer in 2012.

In response the French officials stated that it can only provide help to Hindustan Aeronautics for on-schedule delivery. Dassault Aviation further added that it cannot take up the task of aircraft production at the Bangalore facility as it has no expert control or administrative support.

According to military experts, the deal could lead of a loss of US$20 billion to India, which is twice more than the original estimation due the earlier price evaluation of aircraft and additional cost increase of 5% every year.

The Rafale fighter plane was chosen over Russian MiF-35, Swedish Gripen, Eurofighter, and the U.S.-built F-18 and F-16. The decade long selection process for this new fighter jets was finally won by Dassault as the France-based company was the most reasonable bidder.

However, three years later both the countries are yet to sign the deal. According to sources at the Indian defence ministry the price negotiations were stalled until the problem of licensed production was solved as per the actual request made by Indian defence ministry.
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