DM MP on the record last year in an interview made two claims.. This was right after PM NaMo asked for 36 jets
- He said MMRCA is approprixmately Rs 90000 crs
- HAL takes 2.7 times manhours to make one plane as compared to Dassault
Of course the manhour increase pushes everything haywired right from slow production schedule to increase in cost of production as you end up shelling out more in human capital cost for poor efficiency..
This problem is partly solved by letting Dassault chose the partner from private sector, train them, increase their skills and in tturn ensure production efficiency and similar manhours as is used by Dassault in Merignac plant.
On top the cost of human capital is yes indeed closer to 1/5th for India offering substantial saving for the Indian made Rafale
If you go by basic stuff, MMRCA avg cost all inclusive was approx Rs 720cr per jet looking at the 90000 crs figure...
That's the same range of Rs 720 crs now being targeted for per jet+ weapons package as per Dinakar Peri from the Hindu and other news channel like CNN awaaz etc..
Initially we were looking for closer to Rs650 crs of almost Euro 90 Mn for jet plus weapons in negotiations..
What I was told that for a larger order size of 200 kind of figure zone, India can procure jets plus weapons around Rs 540 crs owing to cost benefits.. Thats the median of range quoted most optimistic at Rs 500 crs and upper limit of Rs 580 crs. Implying between euro 75 mn to Euro 80 mn based on a massive order, localisation of supply chain partially and economies of scale coupled with lower human capital cost..
This is practically impossible if HAL becomes the partner...
Indeed the figure represents almost 20% -25% saving based on upper reaches of 580 crs to 540 crs median value as compared to MMRCA.
The new government is actually working on that logic to reduce the cost and accommodate tangible technology transfer to cases like LCA navy UC, perhaps Indian UCAV program to even a tie up for AMCA program other than blind pursuit of everything under the guise of technology transfer.....
I think
@halloweene was having fun here by reminding us the truth why HAL created Rafales would be costly and why now a pvt sector company offers benefit to India..