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Customization is a one time cost. We don't have to pay for integration of equipment again and again.
French Rafale prices have been pretty constant. Only addition of new tech has increased price, which is perfectly fine. The entire program for the French is only 4% above budget.
The journalist is misinformed. The IGA has all the main details of how we purchase new jets. We had the same thing with the Russians for the MKI also, that's why we paid only $40M for the 42 new jets from Russia, which was adjusted according to inflation since the first deal, and that was more than 12 years after the first signature.
How so customization is one time cost ? Is there a clause in deal which says if india goes for the next batch of Rafael, You dont have to pay for the India specific customization once again or a clause which says India patent those customization and will profit from it if France sells rafael with india specific customization to another country similar to What UAE F-16 deal where UAE will get profit if Block 60 gets sold to another country ?
Sir, I fail to understand that are you trying to close your eyes with your own hand. First check what does this Rafale deal means.
Negotiations over the past 17 months have yielded more advantages to the Indian side over the MMRCA deal. The French had made an opening offer of €12 billion in May 2015 when the negotiations began. The French offer came down to €8.6 billion on the midnight of 25-26 January, 2016 when French President François Hollande was in India as a chief guest for the Republic Day celebrations. But the Indian side wanted the price to be reduced further. It was in May 2016 that the two sides finally agreed at a price of €7.878 billion.. Prime Minister Modi had confirmed in Paris in April 2015 that India would buy 36 Rafales, all built in France. The Rafales will have 14 India-specific enhancements and MBDA-built 150km-range Meteor air-to-air missiles & Scalp-EG cruise missiles as part of the €7.878-billion (around Rs 59,000 crore) deal. The French will also guarantee performance-based logistics support which means that 75% of the fleet will be airworthy at any given time. IAF will also get free training for nine personnel, including three pilots, estimated to be worth €100 million. The IAF will get an additional guarantee for an additional 60 flight-hours for the trainer version of Rafale, and a concession to keep the weapons storage in France for an additional six months without any charge. The French have also agreed to supply spares for a period of 7 years at initial cost, instead of five years, with an option that a new deal will be negotiated for the next five years. The standard European escalation cost has also been brought down from 4% to 3.5%.
The cost looks higher because it includes the cost of spares, support, training, infrastructure. The flyaway cost of the Rafale which India got comes to arround 85 Million a piece, now Please tell me the price of the F16 Block 52 which PAF got, without subsidy.
I stand corrected. A new deal with new set of prices and there is no guarantee if Next government is of Congress and they once again put a stop to deal because of escalating Prices. So there is no guarantee as of now, Next batch would be procured in future.