Defence & civil N cooperation will dominate Francois Hollande's visit; cooperation on rail infra

[Abingdonboy]

IAF will be bankrupt after this deal---Indian govt should declare Pak-FA and Rafale as last 2 fighter jet sales

At the end of the payment period (10 years) India will be the 3rd/4th largest economy in the world with a $4-5TN USD economy spending >$120BN a year on defence- far from bankrupt.

+ The $250MN/unit figure is not confirmed. Some reports say $333MN, others say the French are offering India the same price they pay for Rafales- $100MN or so.

 

[Eminent Mainstream Media]

Bro, the issue is that economical considerations also bind us massively.. as i said if Yasen domestic costs $2-2.4Bn per sub, for India it iwll be more like $2.8-3Bn as the cost of reactor tech will be back saddled too. Now imagine a situation where the GOI gets a plan saying for the same price we may get 2 SSN from west (France) versus one from Russia.

As we are becoming economically better, the bargaining power or buyer is slowly creeping in .. the bargaining power of supplier from erstwhile USSR or Russia now dictated terms and India accepted. Slowly we are beginning to qeustion now.. The FGFA and MTA are few of the prime examples.. The Kashalot was requested for $1.5 Bn lease for 10 years whereas Chakra was 960Mn $... Now thats a 50% jump for a similar N Sub lease not that the Kashalot is superior to Chakra by a margin which dictates 50% jump in leasing price. This has caused MOD to go for more negotiations and slowdown projects.

1- Our requirement have the place for both Yasen type and Barracuda type- in our fleet- Yasen with VLS tubes and deep sea operations and as an individual strike package SSGN (for modern day op- trident)- Barracuda as a SSBN hunter and a carrier escort- Now given your estimates about a 5 CVBG fleet I think only 6 SSN is insufficient- We might peruse the proposed Tejas type solution to fill in numbers with a Private line for manufacturing either type and Govt- yard manufacturing the other- So I think If Yasen with some tech transfer can be bought at even 3 billion USD I think MOD should go ahead with a group of Private player- probably Reliance and L&T combo and the Russian partner- While Govt- Yard at Vizag can tow the Indian customized Barracuda line- Which IMO would be a good solution-

2- Yes we are getting economically better- and the most important thing here is that Russians are economically weaker- they are staring down the pipe and some say the days of early 90s are coming back- Which I suppose give us a better Bargaining power- But here we need to understand Russians here and provide them with realistic deals and when they offer us suitable deals grab them with both hands and not repeat the mistakes we did in late 90s- I hope we complete the Kashalot and get Iribis to may be at a better negotiable rate of 2.1 billion USD for both- It would serve as a stop gap measure till our SSNs roll out-