Rafale deal to be signed on eve of Hollande’s India visit

36 French fighters will arrive over 7 yrs, IAF hopes to build squadron strength.

Written by Sushant Singh | Aanchal Bansal & Mandakini Gahlotnew Delhi | Published: November 26, 2015 12:32 am
Rafale deal, Rafale French deal, Egypt deal, Rafale jets, Indian airforce, Defence Ministry, Dassault, Foreign Military Sales, india news, news The deal will be for 36 Rafale fighter aircraft.

India and France are set to sign the deal for 36 Rafale fighter aircraft on the eve of French President François Hollande’s visit to India for the Republic Day celebrations. The draft contract, which envisages supply of the first fighter within 36 months of signing the deal, has been finalised.

The supply of full complement of 36 fighters to the Indian Air Force (IAF) will be completed within seven years of signing the deal.

The induction of the 36 fighters will add to the IAF squadron strength which is now down to 34. At least 44 fighter squadrons are needed to be comfortable against China and Pakistan.

The proposal for buying 36 Rafale fighters from France in a government-to-government deal was announced during Prime Minister Narendra Modi’s visit to Paris in April.

Share This Article
Related Article

It followed a long-drawn tender for acquisition of 126 medium multi-role combat aircraft (MMRCA) for the IAF in which the Rafale had been selected as the L-1 or lowest bidder after a decade of evaluation, testing and negotiations. Mired in controversies over pricing and transfer of technology, the process was scrapped by Defence Minister Manohar Parrikar earlier this year.

Industry sources said the price of a Rafale fighter in the current deal has been fixed at the 2007 base rate plus an escalation formula agreed upon by both sides. As per commercial bids received for 126 fighters, plus an increment of 5.5-7.5 per cent per year applied on different sub-systems, items and services as per the escalation formula, the final price for the 36 fighters is expected to be around $8.3 bn.

The draft agreement states that all 36 fighters will be supplied by Dassault Aviation in a fly-away condition. To avoid any complications, the two sides agreed for the same SOP (standard of preparation or technical specifications) for the Rafale fighters as agreed upon in the tender for 126 aircraft.

Sources said Dassault was keen to include improvements in the SOP, with limited change in pricing, but the Indian side did not want to introduce new elements in the negotiations.

Defence ministry sources told The Indian Express that the clause for 50 per cent offsets, as mandated in the 126 aircraft proposal, shall be applicable to the current deal.

According to industry sources, the offsets commitment will now be fulfilled through a private vendor. This is a major difference from the earlier deal, where public-sector Hindustan Aeronautics Limited (HAL) was to make 108 fighters in India.

Anil Ambani-owned Reliance Defence Limited (RDL) is said to be the leading contender for discharging the offsets for the 36 fighter deal.

Defence ministry sources say that Dassault and RDL have to fulfil the offset commitment.

Confirming it is constructing a greenfield aerospace facility in Nagpur which will start production in FY 2016-17, RDL said it has not entered into an agreement with Dassault Aviation so far.

For all the latest India News, download Indian Express App

  1. A
    Nov 27, 2015 at 2:39 am
    We dont need it at this cost instead of that we can have 36 SU35 and 10 S400 SAM systems in same price
    1. C
      Dec 26, 2015 at 12:05 am
      dont' worry my dear A , F-35 is three times more expensive and tree times less efficient than the Rafale. Happily your chief of staff knows that perfectly.....
      1. D
        Nov 26, 2015 at 1:11 pm
        36 fighters in 7 years .Makes no sense! Dilip
        1. J
          jay desouza
          Nov 26, 2015 at 1:42 am
          With such deals, ministers, babus, his, (and any middle men) etc do not get their commission. Big lost income. This is the real reason for "intolerance" by pseudos seculars.
          1. K
            Nov 26, 2015 at 11:31 am
            If Dault ends up selling mere 36 aircraft; it stands to be a huge loser. If one looks at this deal in combination with the news item in TOI about progress on Jet Engines co-operation with US; France, like Russia, will cease to be a significant partner of India in the long term. Worse, Rafale may end up being the last fighter aircraft Dault designed and built. Unless, Hollande brings more goodies with him than this article discloses. France has to be more generous to offset US' geopolitical heft.
            1. Load More Comments