In a boost for Modi’s “Make in India” program, India on Friday signed a significant military deal with France for the purchase of 36 Rafale fighter jets at a cost of Euro 7.87-billion (Rs 59,000 crore approx).
Advertisement
Defence Minister Manohar Parrikar and his French counterpart Jean-Yves Le Drian signed the agreement in this regard here.
A Memorandum of Understanding was signed with France in January this year for the purchase of 36 Rafale aircraft.
“This is an achievement which will give the IAF the required potency in terms of penetration and capability”, Parrikar told reporters at the South Block. However, due to the delay over cost and other issues, the Narendra Modi government chose to go for 36 Rafale jets in flyaway condition.
The agreement, which includes the option of buying 18 additional Rafales, also incorporates a 50 per cent offset clause, under which Rafale manufacturers Dassault will invest half the contract value in India’s domestic defence industry.
The weapons package includes, amongst others, advanced Beyond Visual Range (BVR) METEOR missiles which is much better than the previous offer.
“This new contract illustrates the strategic relationship and the exemplary partnership maintained between the two countries and marks the natural culmination of the relationship of trust initiated in 1953 when India became Dassault Aviation’s first export customer”, the company said.
“I am certain that the Rafale and its performance will hold high the colors of the Indian Air Force”.
The aircraft will be equipped with latest missiles and weapon system. Both the Meteor and the Scalp have extreme precisions.
Sources said along with the 36 French fighters, India-specific enhancements and modern air-to-air missiles will give India a clear edge in aerial combat over Pakistan.
India’s Defence Ministry said it would confirm the exact price later on Friday, but officials said it would be close to 7.8 billion Euros.
Antony alleged the almost Rs 59,000 crore that India will pay for 36 fighter jets comes at a steep cost and the jets will not be manufactured in the country under the Make In India initiative.
Antony said 36 Rafale jets are not enough for the Indian Air Force (IAF).
Compared to older generation fighters, which can make three sorties in 24 hours, Rafale jets can make five sorties in the same time. France has to ensure that at least 75 percent of the aircraft, or 27 planes, are operationally available at any given time by providing proper maintenance, spare parts and ammunition. This was when the commercial negotiations gathered pace.
The deal, estimated at $8.9 billion, has been in the works for years.
Advertisement
To bring down the cost, the Indian side asked French officials to calculate the deal on actual cost (Price as on today) plus European Inflation Indices. For the entire deal inflation has been capped at a maximum of 3.5 % or current rate whichever is lowest.
