Skip to main content

Rafale Jet Deal Put On the Back Burner


French Defence Minister Jean-Yves Le Drian came to Delhi, charmed his counterpart A K Antony, but could not conquer.

After three days in India, when he held formal talks with the Indian defence ministry top brass and also lectured the Indian military think-tank IDSA, Le Drian returned home Saturday empty-handed, without even the Rs 1 lakh crore combat jets deal for which French Rafale was chosen as the lowest bidder in January 2012.

Apart from pitching for broader defence ties, Le Drian had to admit he faced the risk of disappointing the discerning strategic thinkers and defence watchers in India and France on the “priority” Medium Multi Role Combat Aircraft (MMRCA) contract.

“Of course, the MMRCA project is the priority. At the risk of disappointing you, I will not be announcing the date of signing the contract,” Le Drian said at IDSA.

The bottom line is: The “most important defence deal in history” to supply Rafale for the Indian Air Force (IAF) may not happen in the near future or during the 2013-14 fiscal, or even during the tenure of the present UPA II government that ends next May.

There were enough signals in this regard during Le Drian’s stay in the Indian capital and during his and his officials’ interaction with the media and the intelligentsia. Le Drian, however, exuded confidence that the contract itself, which was bagged by French firm Dassault Aviation, was not in trouble over the poor financial state of the company.

Dassault Aviation’s Rafale plane had won the stiffly fought four-and-a-half-year contest against European consortium EADS Cassidian’s Eurofighter Typhoon, American major Boeing’s F/A-18 and Lockheed Martin’s F-16, Russian United Aircraft Corporation’s MiG-35 and Swedish Saab’s Gripen.


To assure India that fiscally troubled Dassault Aviation is able to complete the contract obligations in full, the French government will now provide guarantees through an agreement with the Indian government in the MMRCA contract.

“This new agreement needs to be negotiated and hence the deal could be further delayed,” said a senior Indian defence ministry official.

Asked if the French were confident of signing the deal before the next Lok Sabha elections scheduled in April-May next year, a source close to the French defence minister virtually confirmed the fears that this may not be possible, saying: “There was never any deadline for signing of this contract. Negotiations are progressing well. Once these are completed, the contract will be signed.”

The source also noted that the acquisition process for the MMRCA was “complicated” due to “numerous negotiations” for sub-contracts with a large number of Indian Small and Medium Scale Enterprises that are suppliers to the Indian public sector Hindustan Aeronautics Limited, the primary licenced production agency for the Rafale planes.

The Indian SMEs will be manufacturing and supplying the parts and sub-parts required by HAL to assemble the Rafale at its facility in India. Dassault Aviation will supply the first 18 Rafales from its production facility in France, but HAL will be licence-building the rest 108 Rafales of the 126-plane order at its facility here in India.

That apart, the contract-signing is delayed over issues arising out of the offset provisions, under which Dassault Aviation will plough back 50 per cent of the deal amount in Indian defence sector, through either direct purchases or providing technological know-how.

“These are complicated processes and the proposals for offset and technology transfer have to be gone over through a fine tooth comb,” a defence ministry official averred.

Since the January 2012 selection of Dassault Aviation as the lowest bidder in the August 2007 MMRCA tender, already 18 months have lapsed. With the UPA II government heading towards a General Election, the window of opportunity for signing of the contract within the tenure of the Manmohan Singh administration may end by December 2013.

Comments

Popular posts from this blog

Pakistani JF-17 A Thunder OR A Blunder

Pakistan has witnessed new defense acquisitions in this decade than any other, and in the center of it all is the new fighter which was designed by China with partial funding from Pakistan. It is formally known as JF-17 Thunder. When the fighter was in development, Pakistani online communities were jumping with excitement comparing it with its arch rival India’s modern combatants Su-30MKI, Mig-29S & Mirage-2000H. There were claims of it featuring western Radars and long range missiles, & Chinese ordering some due to its superior capabilities. But the reality is far from it. China having spent significant amount of money into a fighter which it is never going to use, most probably forced Pakistan to accept its avionics to offset some its development costs. Chinese who are known for their self reliance first and quality next, are further downgrading JF-17s capabilities with their poorly copy-pirated avionics. Along with their dubious weapons, any chance of JF

Mossad & CIA Committed 9-11: Italian President Francesco Cossiga

Source: http://www.rumormillnews.com/cgi-bin/archive.cgi?read=114778 Former Italian President Francesco Cossiga, who revealed the existence of Operation Gladio, has told Italy’s oldest and most widely read newspaper that the 9-11 terrorist attacks were run by the CIA and Mossad, and that this was common knowledge among global intelligence agencies. The evidence that Mossad planned 911 using Arab patsies is overwhelming; Mossad were caught filming the attack from Liberty Park and then later said on Israeli TV that they were sent there to document (they along with nearly 200 Mossad were rounded up and sent back to Israeli in the weeks following the attack, preventing the FBI from questioning them). Only 5 Israeli's died in the WTC attack; 3 on the airplanes and 2 in the buildings. It is a fact unexplainable by Zionists apologists that Idigo, and Israeli messaging service sent a warning in Hebrew worldwide that a terror attack would happen in a few hours on the da

India Planned Attack On Pak Navy Mehran Base To Kill Chinese Engineers

The terrorist attack on Karachi's Mehran Naval Station on May 22 was conceived and launched by India with the primary objective of killing the Chinese engineers present there, a Pakistani newspaper has claimed, citing 'informed sources'. Four to six Taliban terrorists had entered PNS Mehran on May 22, destroying two maritime surveillance aircraft and killing ten military personnel during their 17-hour siege of the naval air base. "India is the only country in the region that feels troubled by the Pakistan Navy, which had awfully beaten the Indian Navy in Operation Dwarka of 1965. Since then, it has been an earnest desire of India to harm the Pakistan Navy but it was perhaps not possible on the battle front, hence it struck the PNS Mehran," The News quoted sources as saying.