Holland: the sale of additional Rafale to India "will be discussed"
The Point - Published 14.04.2015 on 14:41 - Changed the 14.04.2015 at 14:46
Negotiations are continuing on the original agreement which covers the purchase of 126 Rafale, the majority of which had to be manufactured in India.
The sale of additional Rafale to India, after an initial contract for 36 aircraft already passed, "will be discussed," but "our partner trust us", said Tuesday the president François Hollande, after recently sowed doubt by New Delhi about it. "The Rafale were sold within a framework that will be negotiated," said Francois Hollande, during a trip to Figeac (Lot). "It was necessary to do very quickly with the 36," said he explained with reference to the announcement made Friday by the Indian Prime Minister Narendra Modi on the acquisition of 36 Dassault Rafale. These 36 aircraft will be manufactured in France. Along with the sale of the 36 Rafale, negotiations are continuing on the original agreement which covers the purchase of 126 Rafale, the majority had to be manufactured in India. "For the rest, it will be discussed with our partner," but "he trusted us," continued Francois Hollande, following statements of India casting doubt on the future of this giant contract.
A contract close to 20 billion euros
The Indian defense minister Manohar Parrikar indicated Monday night that the negotiations would not only after a call for tenders, as for the first 36 aircraft, but "government to government". "The goal could be achieved in a government to government agreement," he said, estimating that the negotiations launched in 2012 were taken in a "whirlwind" no solution in sight. The initial contract for 126 Rafale stated that 108 of them are manufactured in India, but the discussions were skating on the overall cost of the devices as part of an innovative technological transfers. Initially estimated at 12 billion euros, the contract would be closer to 20 billion euros, the cost of production of 108 Rafale products in India proving higher than aircraft assembled in France. In contrast, 36 Rafale, the sale was announced Friday, will come out of the Dassault plants in France.
The sale "is excellent for French industry, but at the same time, we must respect our Indian partner" and "see what part will be manufactured in France and how much will be manufactured in India," added the president Hollande, during a visit of advanced aeronautical industrial sites in Figeac.
Hollande : la vente de Rafale supplémentaires à l'Inde "va être débattue" - Le Point
MMRCA deal may be renegotiated through G2G route: Ex-IAF chief
Welcoming the government's decision to buy 36 Rafale planes, former
Indian Air Force (IAF) chief P V Naik today said
India should not throw the deal for 126 medium multi-role combat aircraft (MMRCA) into the trash and renegotiate it through Government-to- Government (G2G) route.
"I don't think the (MMRCA) deal is dead. The deal will probably be renegotiated, on a Government-to-Government basis if the price is right," the retired Air Chief Marshal told PTI in an interview.
It was during Naik's tenure as
IAF chief that India shortlisted Rafale jet and Eurofighter Typhoon in July 2010 after French firm Dassault Aviation emerged as the lowest bidder. The price negotiations by
Ministry of Defence then showed Rafale emerge as the lowest bidder (L1).
Prime Minister
Narendra Modi, during his visit to France, announced India would buy 36 Rafale planes from Dassault in fly-away condition through G2G route.
"First of all, purchase of the 36 aircraft outright is a good thing. This is a positive step. The deal will be renegotiated on a G2G basis, like we have been doing with the US so far. We haven't done a G2G deal with any other country," Naik said.
"Don't throw it (MMRCA deal) into the trash," he said, adding this means, whatever price that (French) air force gets at, you (India) will also get it at the same price.
"They say the 36 aircraft will come (to India) in two years. If that happens, it is a good thing. After signing the contract, it takes minimum three years. Probably, we might gain a year or so," the former IAF chief said.
He said people should not get worried about the deal. "You will get the number of aircraft needed."
Asked what more does the Indian Government need to do to expedite the MMRCA deal, Naik said, "They will have to sit here at the ministry level, approve of the G2G deal.
"I am not aware what transpired during the (Indo-French) discussions. If they have agreed to G2G, then there will be several other items on the basket," the former Air Chief Marshal said.
To a query on his views on the status of overall defence procurement for IAF, he said, "it (procurement) is lagging.
"This (MMRCA) is the biggest deal. It has been in the works for several years. Other things are on track, like additional AWACs, indigenisation and refuelling aircraft."
Drawing the analogy that one car cannot travel on two roads at the same time, Defence Minister Manohar Parrikar indicated yesterday the USD 20 billion MMRCA tender may be scrapped.
MMRCA deal may be renegotiated through G2G route: Ex-IAF chief | Business Standard News