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Rafale deal: Modi's Parisian blunder

Saw the name 'Ajay Shukla' read no further .

Thanks btw

Time will tell its a blunder or a masterstroke. I would like to keep my opinion reserve till then. That being said I do feel PM made the right call. :close_tema:


Most people feel he made the right call we all know that Ajay shukla was anti rafale from start
 
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Congress coud have done so much for India for the past 60 yrs it held office. it didnt do shit. It missed and squandered opportunities away. Blaming Modi, is incredibily short sighted. The guy is trying to correct all the damage done by the previous govt which stupid idiots voted into power for a lost decaded. So fuk off....with your BS complaints. You wanna complain, go look in the mirror. Your dumb fuks
 
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Do not see all Chinese comment as gloating. Chinese are very realistic people. Nationalistic cant bring you too far.

Modi is doing what is best for India. You really think French who put national interest above military deal will budge? Remember Russia Mistral LHD?


The thing is for the first time in decades we have a pragmatic leadership at centre
 
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The shame of it. Even Pakistanis now get to take pot shots at us. And no- India doesn't 'ride on high horse'. We've got TOTs in areas that you can't even imagine to get ever- nuclear submarine design, for instance. Or rocket systems and engine design (Viking). So India's experience with TOT is not like what you have. If we have asked, we have also had track record of getting what we have asked for. This deal was perfectly rigged for that. Sadly they've messed it up.



If the deal was so perfect, why didnt Congress sign it? I have seen other deals Sonia signed off on. Look at the tanks we had. THey had no night vision!
 
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So you're gonna spend money you don't have on the most expensive toys in the market with no additional benefits of technology or manufacturing, that makes real sense. And no, F 18s would have come in faster, the production lines are up and running and cheaper.
The Rafales are far superior technologically. The IAF conducted its professional analysis. They decided that the Rafale and EFT are superior.

So GoI has to ensure purchase between the two of them.

That said, directly purchasing 3 squadrons of Rafales would cost less than half of the cost of purchasing 6 squadrons with ToT. As you are aware, each Rafale is significantly cheaper without ToT than it is with ToT.

That means that over $10 billion(out of the original $20 billion MRCA contract) will be saved that can be invested in other areas including faster induction of LCA.
 
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Congress coud have done so much for India for the past 60 yrs it held office. it didnt do shit. It missed and squandered opportunities away. Blaming Modi, is incredibily short sighted. The guy is trying to correct all the damage done by the previous govt which stupid idiots voted into power for a lost decaded. So fuk off....with your BS complaints. You wanna complain, go look in the mirror. Your dumb fuks


Leave 60 years just look at the last decade alone - the state of affairs of our defence .Nobody complained then , now when a little pragmatism is bought to the table some Italian bootli$$ers are running amock crying :D
 
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The Rafales are far superior technologically. The IAF conducted its professional analysis. They decided that the Rafale and EFT are superior.

So GoI has to ensure purchase between the two of them.

That said, directly purchasing 3 squadrons of Rafales would cost less than half of the cost of purchasing 6 squadrons with ToT. As you are aware, each Rafale is significantly cheaper without ToT than it is with ToT.

That means that over $10 billion(out of the original $20 billion MRCA contract) will be saved that can be invested in other areas including faster induction of LCA.
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In his review, Parrikar also found that the bureaucracy in the ministry—both civil and military--was sitting on some 400-odd big and small projects that are critical to the three armed forces. Without getting into details, he said: “The first thing I did was to look at projects that are stuck at various stages of clearances since the most common complaint across the board was ‘nothing moves’ in the MoD.” A thorough review revealed that nearly one-third of the 400-odd projects were now irrelevant. So they were discarded. About 50 projects were accelerated since they were of critical importance.

A decade-long impasse in defence acquisitions has been broken with the decision on Rafale, raising renewed hope in the sector. Parrikar has brought in a sense of purpose in the notoriously obdurate MoD bureaucracy. “There was no control over the system. There were no reviews, no feedback and there was no fear of punishment for non-performance. An important ministry like Defence cannot run like this,” Parrikar said in an interview. So he has now instututed a time-bound performance review system aimed at speedy clearances and implementation of projects.
 
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Details of the lame duck deal emerge. It's not 120 more jets but 18 more. And yes, Modi gave in to pressure to make the summit look good, screwed our military needs and splurged 6 Billion. @Abingdonboy @Bang Galore @Rain Man @SarthakGanguly ....there ain't no honey pot at the end of this rainbow.

Rafale deal: Modi's Parisian blunder - Rediff.com India News

The French have been rewarded for their obstinacy with exactly what they wanted -- an order for fully built Rafales without technology transfer, says Ajai Shukla.

'Make in India' has a nice patriotic air to it, especially when Prime Minister Narendra Modi tells an international audience at the Aero India 2015 show in Bengaluru that 'India will emerge as a major global centre for the defence industry,' with aerospace the sun that lights this new dawn.
Successive Congress-led and Bharatiya Janata Party-led governments have looked to $10 billion worth of offsets arising from India's tender for 126 Rafale fighters to galvanise India's aerospace ecosystem.
Indian negotiators had made it clear to Dassault that it must lower prices and increase indigenisation to win that tender.
Yet it is now clear this is not to be.
With Dassault reeling on the ropes, Modi last week scuppered the negotiations by presenting France with an order for 36 Rafale fighters.
His apparent wish for a successful summit drove three weeks of frenetic New Delhi-Paris talks that handed a delighted Dassault an unexpected knockout victory. (this is the truth @Bang Galore )
Essentially, Dassault has dragged out negotiations until New Delhi's need increased, and the wish to seem strong on defence converged with the desire to make a diplomatic splash in Paris.
At that point the French were rewarded for their obstinacy with exactly what they wanted -- an order for fully built aircraft without the need to transfer technology.

Says a keen observer of Indian defence procurement: "All vendors are now clear that ignoring India's demands long enough ends in a reward that makes all Christmases come at once. This doesn't bode well for New Delhi in that next negotiation on whatever."
Effectively, New Delhi, Paris and the Indian Air Force agreed that a bird in the hand was worth two in the bush.
Inking a government-to-government agreement to bypass the deadlocked negotiations for 126 Rafales, the IAF would get 36 fully built Rafales and, inevitably, buy 18 more as 'options', settling for three Rafale squadrons instead of the six squadrons of medium multi-role combat aircraft earlier visualised.
Done away with was the tiresome prospect of building 108 of those 126 fighters in Hindustan Aeronautics Ltd.

Instead, New Delhi followed the Mirage 2000 model of the 1980s, when an initial purchase of two squadrons in 1983 was followed up with a few more aircraft to make up a third squadron.
The Mirage 2000 was never built in India, just as the Rafale will never be.
After three days of silence, Defence Minister Manohar Parrikar on Monday, April 13, said the tender for 126 fighters was dead, and procurement would continue on the government-to-government route alone.
His ministry tweeted: 'G-2-G route (is) better than the (open tender) path for acquisition of strategic platforms.'
It is unclear whether this puzzling statement means that Indian defence procurement would henceforth follow only the G-2-G route; or whether he means that his ministry retains the discretion to arbitrarily scrap a tender at any time and follow a different path.
For the spurned aircraft vendors, who had each spent an estimated $50 million on the tender processes and trials, this is an important question.
In any case, the figures had already made clear that further purchases were a pipedream.
Each of the 36 Rafales now requested would cost some $150 million to $180 million along with its basic armaments and payload.
Even if we accept the bare-bones figure of $125 million that government spin-doctors will put out, 36 Rafales would cost $4.5 billion and 54 Rafales $6.75 billion. Paid out over seven years, that would add Rs 4,000 to Rs 6,000 crore (Rs 40 billion to Rs 60 billion) annually to the IAF capital budget, which already accounts for a third of all modernisation funds (Rs 31,818 crore (Rs 318.18 billion) out of Rs 94,583 crore (Rs 945.83 billion) in 2015-2016).
With this already a stretch, where is the scope for another $18 billion to $20 billion contract for 126 more Rafales, which would add another Rs 15,000 crore (Rs 150 billion) to the IAF's annual procurement budget.
To divert attention from this the government insinuates Paris was pressured into selling 36 Rafales at a (so far, inexplicably, secret) price that is cheaper than the one being negotiated in Delhi.
This is laughable. Even a defence novice knows that buying off-the-shelf is inherently cheaper; since the vendor is no longer required to supply proprietary technology or intellectual property, and is spared the risk, effort and expense of establishing production abroad and standing guarantee for products built there.
New Delhi has spared Dassault all this, ensuring in the process that Indian defence industry (especially HAL) derives no technology benefit from buying the Rafale.
The IAF will remain dependent on Dassault for maintenance and spares and, two decades hence, when the Rafale needs to be modernised, India will pay more for the upgrades than it paid for the Rafale itself -- just as the IAF is currently doing for upgrading the Mirage 2000.
To justify handing out billions to a French company that is struggling to survive, rather than directing the money towards India's fledgling aerospace industry, the government has deployed the tired bogey of national security, citing 'the critical operational necessity of fighter jets in India.'
Defence Minister Manohar Parrikar had declared that these 36 Rafales would enter the IAF service within two years.

Apparently, the government has a two-year threat assessment that requires two squadrons of Rafales so urgently that we must abandon a decade-long (and widely praised) selection process right at the point of culmination.
What remains unclear is how Parrikar imagines these 36 Rafales would be delivered to the IAF within two years. Currently, Dassault is building barely one Rafale every month for its sole customer, the Armee de l'Air, as France calls its air force.

Ramping up fighter production requires a lead time of at least 18 months, during which Dassault's sub-vendors -- Thales, Safran and some 500 sub-contractors -- would ramp up production of engines, avionics, etc, to meet India's demand (and Egypt's contract for 24 aircraft, when signed).
Only after this supply chain cranks into higher gear will the Rafale roll off the lines faster.
Given France's desperation to export the Rafale, it is entirely possible that the Armee de l'Air suspends its own requirements and diverts Dassault's entire production to India (and Egypt). Even so, it would be a manufacturing miracle if the IAF receives its 36 Rafales in less than four years.
On August 8, 2014, then defence minister, Arun Jaitley told Parliament that Dassault would take three to four years to deliver 18 Rafales in flyaway condition.
Parrikar inexplicably promises twice that number in half the time.
Another troublesome question hanging over this handsome present to Dassault is: Once Mr Modi decided to bypass the deadlocked August 2007 tender, why was Dassault awarded a 'single-vendor' contract?
The Eurofighter Typhoon had met every IAF requirement in its evaluation trials.
At the very least, the Eurofighter should have been invited to submit a parallel bid for 36 Typhoons in flyaway condition.
Apart from the possibility of getting the Typhoon cheaper and more quickly than the Rafale, introducing competition into the bidding -- as the defence procurement procedure explicitly recognises -- would almost certainly have driven Rafale's bid lower.
Like in all defence deals, the market place is abuzz with speculation.
Anil Ambani, who attended Modi's meeting with defence chief executives in Paris, reportedly held a long discussion with Dassault chief Eric Trappier. With the procurement of 36 Rafales not bound to HAL as the tender for 126 fighters was, how are new players positioning themselves to benefit from New Delhi's turnaround?
The coming days will tell.

(his crony capitalist friends will get a share of the $ 6 Billion Bonanaza. So 'cost' is no longer a real concern.)

Rather, all the vendors should realize that ignoring India's demands may reduce their deal to 1/4th of the original deal.

Rafale was a classic management case of a company failing to assess the changing market conditions and trying to sell their hi-tech CRT TVs for top prices in the age of LED TVs. Let me summarize it point by point.

1. Rafale was one of the most modern and technologically advanced aircraft back in 2001 when the MMRCA deal was conceived. But it dragged on for close to one and a half decade without any sign of completion.

2. Even if the deal was completed by 2015 as per the original plan of importing 18 aircrafts and making the rest of 108 in India, HAL would have started delivering the aircrafts somewhere around 2022 or 2025 going by the complexity of the things and pace of its operation.

3. But by that time LCA MK-2 would have been in production, more importantly, the more advanced 5th generation PAK-FA/FGFA jointly being developed by India and Russia would be in production, needless to say that with ToT and source codes.

4. So, essentially Rafale would have become an old design by the time it would have been in production in India. More importantly, our 5th gen FGFAs would have been similarly priced against Rafale, further making the Rafale a bad deal.

5. Considering the situation, it does not make sense to order Rafale in such big numbers when we will have better alternatives during the same timeline, give and take 2-3 years maximum.

6. Neither it makes any sense to pay top dollars for the FULL ToT of a rather old 4th gen aircraft design, it will be much more cheaper for us to buy separately the technologies that we need from French or other sources, like technologies for fighter jet engines, radar, etc.

7. At the same time, we cannot ignore the fast depleting strength of our air force. Hence, the 36 Rafale deal to just plug the hole for the time being, a hole that was created by the previous government by its indecision and utter lack of pro-activeness.

I hope I have answered your queries and concerns to your full satisfaction.

Feel free to reply for any further queries and/or clarification that you might have, I will be happy to help you.

Thank you. :)
 
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I am new to the forum, however I will say this - you seem to have a very closed mind in that anything contrary to your view is incorrect.

I am amused to this response of yours to my post.

th response is the accurate one. In fact a more accurate one will be the following. Modi's been giving jalebis all throughout, yesterday there was a news items that said that Rafales are being cancelled for 'faster inducton of LCA' and then the same day another news item that says 'new competition opened for Light fighters to compete with LCA'. Bhakt even talked about AMCA as a possible replacement for rafale All this is cumulatively called 'Jalebi'

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Rather, all the vendors should realize that ignoring India's demands may reduce their deal to 1/4th of the original deal.

Rafale was a classic management case of a company failing to assess the changing market conditions and trying to sell their hi-tech CRT TVs for top prices in the age of LED TVs. Let me summarize it point by point.

1. Rafale was one of the most modern and technologically advanced aircraft back in 2001 when the MMRCA deal was conceived. But it dragged on for close to one and a half decade without any sign of completion.

2. Even if the deal was completed by 2015 as per the original plan of importing 18 aircrafts and making the rest of 108 in India, HAL would have started delivering the aircrafts somewhere around 2022 or 2025 going by the complexity of the things and pace of its operation.

3. But by that time LCA MK-2 would have been in production, more importantly, the more advanced 5th generation PAK-FA/FGFA jointly being developed by India and Russia would be in production, needless to say that with ToT and source codes.

4. So, essentially Rafale would have become an old design by the time it would have been in production in India. More importantly, our 5th gen FGFAs would have been similarly priced against Rafale, further making the Rafale a bad deal.

5. Considering the situation, it does not make sense to order Rafale in such big numbers when we will have better alternatives during the same timeline, give and take 2-3 years maximum.

6. Neither it makes any sense to pay top dollars for the FULL ToT of a rather old 4th gen aircraft design, it will be much more cheaper for us to buy separately the technologies that we need from French or other sources, like technologies for fighter jet engines, radar, etc.

7. At the same time, we cannot ignore the fast depleting strength of our air force. Hence, the 36 Rafale deal to just plug the hole for the time being, a hole that was created by the previous government by its indecision and utter lack of pro-activeness.

I hope I have answered your queries and concerns to your full satisfaction.

Feel free to reply for any further queries and/or clarification that you might have, I will be happy to help you.

Thank you. :)

yeah you answered me to my satisfaction alright. I knew you'd pull stuff out of your rear and you did. I'm happy that you typed all this thinking you're saying something important. :lol:
- rafale is medium class jet and has no relationship with FGFA (heavy) or LCA (light)
- All jets that participated in the competition are more than 15 years old (one is more than 40 years old). the question is about avionincs and frame being of AF's importance.
-36 rafale jets were singed ONLY for modi to look good in the summit. hectic 3 week negos were done only to make sure that he looked good there
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tHE 36 Jet deal was both dumb and expensive.
 
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Its Ajai Shukla afterall... i like views from all.. so let me paste another view of few gentlemen. In terms of credibility you can be an individual judge to this of who is better between the two or three. Bear in mind whatever is good for the country, i am fine with it.. be it rafale or FGFA or both.. At least i am sure i cannot be called a french lobbyists (if they want they need to pay for my "services" and make me rich)

Fear of buying
Defence deals create controversy because they are small, piecemeal, with many vendors. India must get over its post-Bofors paranoia
Shekhar Gupta | | April 16, 2015 | UPDATED 10:35 IST


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Prime Minister Narendra Modi's dramatic purchase of 36 Rafale jets has drawn extreme comments. One, that this is a bold, gutsy decision of a leader who is not afraid to break the multiple logjams in defence acquisitions. Two, that it is a panicky decision to fill a crucial gap in a fast-depleting Indian Air Force Order of Battle (ORBAT) with obsolescence of the entire MiG series (MiG-29 apart), and is typical of our bandaid-tourniquet doctrine of defence purchases.

There's truth in both arguments, though I am more inclined to the first view. This is a gutsy decision which breaks a stalemate and ends, at least for the moment, the vicious lobbying, leak-versus-leak battles in New Delhi. But there is also merit to the second view. How did India paint itself into such a corner, weakening its strategic posture? The result was it ended up making possibly a $5 billion purchase off-the-shelf in a wartime-like haste, embarrassing for the aspiring globaliser fielding the world's fourth largest army and listed, traditionally, as the top military importer in the world.

Stockholm-based SIPRI, which estimates import data in terms of constant 1990 value dollars, puts the value of India's total arms imports in five years (2010-14) at a little over $21 billion, and about three times the second largest, Saudi Arabia. Pakistan is a little bit behind, with just over a fourth of India's arms import bill, although that figure could need some correction for the complexities of putting a realistic value of imports from the US and China, both "special relationship" suppliers. The SIPRI figures look accurate if we compare them with the only reliable rupee data available with us, in the form of answers to Parliament questions: Arun Jaitley said India's arms imports were around Rs.83,000 crore in the past three years, and Manohar Parrikar saidRs.1,03,000 crore in five years, or $16 billion. But if you think 1990 rupee-dollar, SIPRI' s $21 billion would be in the ballpark.

Two points arise from this. First, that Modi's decision to order these Rafale jets off-the-shelf was wise and brave, like a senior doctor risking immediate surgery to save a deteriorating patient. The second is a question. How did the fourth largest military machine in the world get itself in the ICU in the middle of the night over a weekend needing emergency surgery?

Or, to make it inconvenient for this columnist, you could summarise and reword the same questions as something like: Mr so-and-so, go get your head examined, how can you accuse a country importing more armaments than the next three countries in rankings together of suffering from a fear of buying? How can this country then be perpetually short of crucial weaponry? Aren't you a jumble of contradictions?

These are perfectly valid questions and I have no defence except to say that this reflects the multiple paradoxes and contradictions of India's defence planning. You want to appreciate this better, read this dubious honour of being the top importer along with the statements of successive service chiefs on crucial shortfalls. For me, the most telling statement of all came from General V.P. Malik, in the early days of Kargil in 1999 when he said in frustration: "We will fight with what we have." He was the chief of one of the world's largest and finest armies.

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To delve into this maze of contradictions, you need to write a couple of tomes. Some have been written too. My favourite is Arming Without Aiming, jointly written by the foremost expert on South Asian militaries, Stephen P. Cohen, and Sunil Dasgupta (who worked with me in this magazine two decades ago as a young reporter learning to cover defence). Both are based at Brookings in Washington now and bemoan lack of a culture of strategic thinking and planning in India. The Indian doctrine, they imply, is purely tactical, episodic, immediate-need-based, and conforms to the basic Indian approach to all infrastructure: create shortages and then keep planning to deal with them. My own most telling insight on this sits in my rather flimsy personal archives. It is a handwritten note scribbled with a pencil on a scrap from Jaswant Singh. He slipped it to me with a smile at a strategic affairs brainstorm at Schloss Leopoldskron, Salzburg, in the summer of 1994, as General Sundarji held forth on the weaknesses in India's strategic doctrine. "I headed the parliamentary committee to examine India's military-strategic doctrine," wrote Jaswant Singh. "We concluded there was no strategy and no doctrine."

There is zero evidence this has changed. Because if it had, we would not be buying frontline fighters off-the-shelf as if picking groceries at a supermarket after 17 years of debates, controversies and near-scandals. This has been the consistent history of our defence purchases except, say, a remarkable 1985-89 phase under Rajiv Gandhi which, sadly, became a problem and made our fear of buying an incurable virus. The result of this piecemeal approach is that our armed forces are under a constant stress with shortages. The same disease had plagued us during, and in the course of, every war, even if we leave out 1962 as an exception. We believe in 1971 Indira Gandhi and Jagjivan Ram gave the armed forces a free hand and time to build up fully before going to war. This included emergency, bulk import of used Soviet-made T-55 tanks from Poland, induction of heavy, but short-legged Sukhoi-7s for close support (it ended up with the highest attrition rate). And now, scholar Srinath Raghavan tells us in his wonderfully researched and written 1971: A Global History of the Creation of Bangladesh that on the eve of 1971 the government of our greatest anti-Zionist, pro-Palestinian leader ever, Indira Gandhi, secretly pleaded with the Israelis for crucial weaponry, including long-range mortars, though we did not have diplomatic relations with them. Of course, the Israelis helped as they had done twice in the past.

Remember the initial setbacks IAF suffered in Kargil, when two MiGs and a Mi-17 attack helicopter were lost and all crew were killed, except one taken POW? A fourth, a sturdy photo-reconnaissance Canberra (since retired), was nursed back to base by a deft crew. All were hit by shoulder-fired missiles. It needs to be said that it was because IAF commanders were still operating in old derring-do, precise, daylight, low-level strike missions of the pre-missile age. The result was losses while very little was achieved with old-fashioned bombs, rockets and strafing. Once again, tactics changed after setbacks (recall the loss of all four obsolete Vampires sent out over Chamb in the first air battle of 1965, not to be used again in that war).

Again in 1999, the IAF suffered no casualty in nearly 50 days of more effective operations after the first few. It not only changed tactics, but also imported-again from Israel in an emergency-laser pods to rig on Mirage-2000s to carry out precision bombing of Pakistani positions at night. If you scratch your memory, or look at archives, those are the videos the IAF displayed at one of the press conferences in the decisive phase of that war and when the tide turned.

This isn't meant to be a comprehensive litany of our short-termism. It is to explore a limited question, with apologies to Erica Jong: Why this fear of buying? Since 1987, one reason is the Bofors syndrome. Every defence purchase is fraught, delayed or "thrown in orbit" as Lutyens description goes for sending a file into a permanent spiral of indecision. This makes New Delhi the easiest playground for arms dealers, middlemen (by whatever name you call them) and a new phenomenon, the dedicated, B-to-B, arms bazaar media. Public is confused between negotiations, shifting requirements, a constant whiff of scandal and a belief that the system is owned by this massive, evil arms trade. At the same time, we continue importing more than any other nation in the world. You want a paradox: A.K. Antony, our most risk-averse, most anti-US defence minister since 1991, ended up buying more from the US, and directly, on government-to-government basis and off-the-shelf (C-130s, C-17s, P-8Is) than in our entire independent history. Modi has resumed that de-risked, emergency buying tradition, though with great dash.

The only way to fight phobias is to face them. It is fashionable to curse Rajiv for Bofors and more, but the truth is, 1985-89 was the only period in our history that weapon acquisitions were proactive, futuristic and redefined the largely defensive tactical doctrines until then. Sundarji's Brasstacks and Checkerboard were aggressive and aimed at delivering crushing blows in enemy territory than merely protecting your own. The fear of Bofors has blighted South Block since. But think. In a war even today, bulk of the hardware the three forces will field was ordered by Rajiv, from Mirages to T-72 tanks to new series MiGs, BMP armoured fighting vehicles and, of course, Bofors artillery. In these years our defence budget crossed that Lakshman Rekha of 4 per cent of GDP.

Today it is well below 2 per cent of a growing GDP, and quite adequate. For a reality check, our five years' defence imports are two-thirds of our gold imports in a year and, more tellingly, less than a tenth of the import bill of Reliance Industries and about a seventh of Indian Oil Corporation, a PSU. But controversy dogs only defence imports not because they are huge, but because they are small, piecemeal, with many vendors, and the "system", wrapped-in-latex post-Bofors, is petrified of handling it. If you give up that fear, you can embark on another systematic modernisation as in 1985-89.

If you don't, you will again land up in the ICU over a weekend needing emergency transfusion, if not surgery, soon enough.

Defence deals create controversy because they are small, piecemeal, with many vendors. India must get over its post-Bofors paranoia : National Interest - India Today

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Another View
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RAFALE DEAL
In-A-Jam Solution
How game changed, calling for new plan


Prime Minister Narendra Modi’s visit to France was not entirely negative for sure. But many are looking at the two major deals announced—outright purchase of 36 Rafale fighter jets, and the l&t-Areva agreement for constructing the epr nuclear reactors at Jaitapur in Maharashtra—as unmitigated disasters.

The IAF has been thrown a juicy bone with the government-to-government acquisition of 36 Rafale jets. But this will materialise only two years down the line even if India is quick to sign the contract. Prime Minister Narendra Modi’s much-vaunted ‘Make in India’ policy, however, suffers a major setback. For Dassault Aviation, though, it’s a thumping victory.

For over three years, the contract for buying 126 Rafale jets had been foundering. In France, the reputation of Hindustan Aeronautics Ltd (HAL) is rock-bottom. French defence majors who have worked with HAL describe it as “unprofessional and unreliable in the extreme”. The original plan was to buy 18 aircraft in ready-to-fly condition. HAL was to produce 108 more under licence in India. But Dassault refused to take responsibility for planes manufactured by HAL. Besides, there were disputes over pricing: an off-the-shelf purchase will cost India much more per aircraft than if the original deal had gone through. The actual transfer of technology will be limited and the outright purchase lets Dassault off the hook on that score. French sources place the value of this purchase at over Euro 5.5 billion. Dassault CEO Eric Trappier and his colleagues will be laughing their way to the bank.

Modi’s much-vaunted ‘Make in India’ policy suffers a huge setback. Dassault, however, strikes a Rs 50,000-crore deal.

At one time, India had the French aviation giant in a squeeze. The French defence ministry had curtailed its order for Rafales from 11 aircraft per year to just 26 over the next six years. Dassault badly needed the oxygen of foreign sales. India thought it could press the company for an even better deal: but there comes a point beyond which negotiations stall. The IAF badly needs the fighters: the government should have been careful not to push to the brink. On February 12, France announced the sale of 24 Rafales to Egypt, to be bankrolled by Saudi Arabia and Qatar. Now, Dassault was in a dramatically better bargaining position. No longer did it have to accommodate New Delhi’s manoeuvring over prices or over manufacturing by HAL. Dassault could afford to drag out the negotiations.

In India, pressure was building up. Paris told New Delhi that failure of the Rafale contract could seriously dent Indo-French relations. The IAF, realising the deal could collapse, raised the ante. And French defence minister Jean-Yves Le Drian made three trips to Delhi between December and March. In December, the India defence minister had told Le Drian he would accelerate the process. By February, the tide turned against India. In March, New Delhi told Paris that in the face of Dassault’s newfound intransigence, another urgent solution had to be found—outright purchase. On April 7, French President Francois Hollande and Le Drian discussed and finalised their response to New Delhi. It was kept secret: even HAL chairman and CEO T. Suvarna Raju learnt of the purchase from the newspapers while in Paris.

Insiders in the defence industry say other producers and suppliers would also have been reluctant to accept the global tender route, especially if HAL conditionality was retained. Also, they said, the Indian private sector is not yet equipped to collaborate on high-tech projects such as making sophisticated fighter jets. A specialist defence journalist says, in the short run, Modi’s ‘Make in India’ ambitions are unrealistic.

For India, the relationship with France is crucial. Though a middle-level power, France is a defence major, and can provide high-tech products and services in infrastructure, transport and waste disposal and in the fields of nano, nuclear and space technologies. France is also a permanent member of the un Security Council; New Delhi is counting on French support for its membership bid. But that’s another matter. Many political observers are of the opinion that, given the nature of Paris’s own vested interest in the status quo on UNSC membership and its close ties with Germany, it’s doubtful if France will go the extra mile for India.

In-A-Jam Solution | Vaiju Naravane

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Another view
Nitin Gokhle (The one who too DM M Parrikar's interview in DD)
A Bold Political Decision for a Crucial Defence Need

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Nitin A Gokhale, Editor & Senior Fellow, VIF
The saga for procurement of 126 Medium Multi-Role Combat Aircraft (M-MRCA) for the Indian Air Force (IAF) actually began in 2001, gathered steam in 2007 and was stuck in price negotiations for the past three years. Meanwhile, the IAF's combat fighter jet strength was depleting fast. Over the past couple of years, the Air Force top brass was alarmed enough to tell the government that its conventional combat edge even against Pakistan was in danger of being lost.

So last week, hours before Prime Minister Narendra Modi embarked on his three-nation tour, a political decision was taken to explore the option of buying Rafale jets through a government-to-government (G-to-G) contract with France. The breakthrough will now allow the IAF to induct Rafale fighter jets in a two year time frame and at least partially make up for its depleting combat jet strength.

However, it is the next step in aircraft procurement that will be watched intently. Will this decision of going for G-to-G mean that all future purchases of this magnitude will be handled in this manner? If so, what happens to the much-touted Make in India programme? The roadmap is not clear but Defence Minister Manohar Parrikar gave enough hints about what the government is thinking in an interview that this writer co-hosted on Monday for Doordarshan (Rafel Vaayusena Ki Jaroorat, Sawal Bemani: Parrikar - YouTube).

Not surprisingly, skeptics have hit out at the decision. The criticism has ranged from "it's too little too late," to "it goes against the Make in India concept." But both Modi and Parrikar were clear that they had to put the interest of the IAF above everything else and which what they have done. Mind you, procuring 36 Rafales is just a stop-gap arrangement to arrest the rapidly falling numbers in IAF's combat fleet.

Lauding the Prime Minister for taking a bold decision in breaking the Rafale deadlock, Parrikar said future large procurements for the IAF and indeed for the armed forces at large, will have to be G-2-G but Make in India will also get a look in for other projects. For instance, IF more Rafales, were to be bought--over and above 36 decided now--Dassault could be asked to manufacture them in India. Even if any other lighter aircraft was to be selected, the pre-condition will be a tie-up with an Indian company or consortium.

It is to Parrikar's credit that he decided to think differently on a knotty issue and suggested a way out to the Prime Minister. In fact, in less than six months after taking over, Parrikar has studied various complex issues dogging the defence ministry and has come to his own conclusions on what needs to be done. By his own admission, Parrikar spent the first four months as defence minister in taking inputs from a range of experts both within and outside the MoD before making up his mind.

In his review, Parrikar also found that the bureaucracy in the ministry—both civil and military--was sitting on some 400-odd big and small projects that are critical to the three armed forces. Without getting into details, he said: “The first thing I did was to look at projects that are stuck at various stages of clearances since the most common complaint across the board was ‘nothing moves’ in the MoD.” A thorough review revealed that nearly one-third of the 400-odd projects were now irrelevant. So they were discarded. About 50 projects were accelerated since they were of critical importance.

A decade-long impasse in defence acquisitions has been broken with the decision on Rafale, raising renewed hope in the sector. Parrikar has brought in a sense of purpose in the notoriously obdurate MoD bureaucracy. “There was no control over the system. There were no reviews, no feedback and there was no fear of punishment for non-performance. An important ministry like Defence cannot run like this,” Parrikar said in an interview. So he has now instututed a time-bound performance review system aimed at speedy clearances and implementation of projects.

Hopefully, the new measures will revitalise the functioning of the crucial arm of the government in coming months.

A Bold Political Decision for a Crucial Defence Need | Vivekananda International Foundation

Thanks for posting ....both articles are quite succinct and insightful ...
 
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yeah you answered me to my satisfaction alright. I knew you'd pull stuff out of your rear and you did. I'm happy that you typed all this thinking you're saying something important. :lol:
- rafale is medium class jet and has no relationship with FGFA (heavy) or LCA (light)
- All jets that participated in the competition are more than 15 years old (one is more than 40 years old). the question is about avionincs and frame being of AF's importance.
-36 rafale jets were singed ONLY for modi to look good in the summit. hectic 3 week negos were done only to make sure that he looked good there
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tHE 36 Jet deal was both dumb and expensive.

Oh dear! I think you need further help. :)

First, fighter jets are not boxers or wrestlers whom you should categorize by weight, the classification is more to do with the cost of purchase and cost of operation, and there won't be much difference between the older Rafale and more advanced 5th gen FGFA in this regard.

Second, LCA MK-2 version won't be a lightweight either.

Third, we already have developed quite advanced avionics that we can develop further with the help of Israelis or even the French at a much lower cost.

Fourth, Rafale airframe design is already old, we are getting a far more advanced airframe design with OUR OWN FGFA. So, we don't really need to bear that extra cost for ToT of Rafale airframe design.

Fifth, there should be no doubt in anybody's mind that we urgently need to plug the gap in our airforce, a small number of Rafale at a lower cost can do the job nicely for the time being. We do have better options for the future.

I am sure now you will be fully satisfied with the answers as I have quenched your thirst for knowledge. :)
 
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:rolleyes::lol:
Oh dear! I think you need further help. :)

First, fighter jets are not boxers or wrestlers whom you should categorize by weight, the classification is more to do with the cost of purchase and cost of operation, and there won't be much difference between the older Rafale and more advanced 5th gen FGFA in this regard.

Second, LCA MK-2 version won't be a lightweight either.

Third, we already have developed quite advanced avionics that we can develop further with the help of Israelis or even the French at a much lower cost.

Fourth, Rafale airframe design is already old, we are getting a far more advanced airframe design with OUR OWN FGFA. So, we don't really need to bear that extra cost for ToT of Rafale airframe design.

Fifth, there should be no doubt in anybody's mind that we urgently need to plug the gap in our airforce, a small number of Rafale at a lower cost can do the job nicely for the time being. We do have better options for the future.

I am sure now you will be fully satisfied with the answers as I have quenched your thirst for knowledge. :)


yeah, more BS don't make the original BS you have written and less BSy. Don't tell anyone in the AF that you're comparing Rafale Af wiith FGFA AF, they'll laugh :lol:. And you just decided to mixup the figher classes on your own :lol:. You're suggesting a point defence fighter with low loitering time to replace a medium class fighter? Other a deep penetration and strike fighter with a medium role fighter. Man the stuff you need to cook up to defend these is just AMAZING :lol:. And like I said, all fighters in the competition are more than 15 years old. :disagree:
 
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