DEFENCE MINISTRY GETS RS. 86,000 CRORE FOR RAFALE FIGHTERS

Discussion in 'Indian Air Force' started by WolfPack86, Mar 1, 2016.

  1. WolfPack86

    WolfPack86 Senior Member Senior Member

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    New Delhi: The Defence Ministry will have about Rs. 86,000 crore for the financial year 2016-17 to fund the purchase of the French made Rafale fighters, Medium Range Surface to Air Missiles (MRSAM) and Submarines for the Indian Navy.
    If the Rafale deal goes through, at an estimated cost about Rs. 60,000 crore, India will have to pay about one-sixth of the total cost in the financial year to France.
    The total budget allocation for this financial year of Rs. 2,49,099 crore is an increase of nearly one per cent over last year's allocation.
    This is apart from the funds for pension and allocation for payment for One Rank One Pension which stands at Rs. 82,332 crore.
    The Defence Ministry returned back about Rs. 20,000 crore worth of unspent funds to the exchequer this time. "This is excess is largely because of low international fuel prices," a senior MoD official told NDTV.
    Out of nearly Rs. 2,50,000 Crore allocated to the ministry, Rs. 1,62,759 crore is allocated for Revenue expenditure. It includes expenditure for Defence Ordnance factories, Research and Development, Rashtriya Rifles, Military Farms and the National Cadet Corps.
     
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  3. WolfPack86

    WolfPack86 Senior Member Senior Member

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  4. PaliwalWarrior

    PaliwalWarrior Regular Member

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    The key is the si. Heading of budget for acquisition of aircrafts & aero engines
     
  5. garg_bharat

    garg_bharat Senior Member Senior Member

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    86000 crore for Rafale?? Is it correct title??

    We expected an increase of Rs 10000 crore in Air Force allocation if Rafale was to be paid for this year. There are many other programs to pay for too, both local and imported.
     
  6. Bornubus

    Bornubus Senior Member Senior Member

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    Modernisation of Armed forces takes a back seat,again.OROP takes a large chunk,the money otherwise allocated for capital exp.

    Tin Buckets will be in army for a long time.
     
  7. sasum

    sasum Atheist but not Communists. Senior Member

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    It is a mischievous title by TOI. The budgetary allocation is for purchasing mmrca & Subs. Rafalla is just a candidate aircraft and subject to signing of the final agreement. Probably Rafalla will fall through if Dassault fails to freeze the deal at $7-8 billion or raise the offset to 50% of the agreed price.
     
  8. garg_bharat

    garg_bharat Senior Member Senior Member

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    BMP-2 upgrade can be done. Who stops Army?
    T-72 modernization can be done. Who stops Army? Why cant Army go for upgrade similar to Russian T-72B3.

    Radically new programs like FICV: these will move at a slow pace unless Army comes down on requirements.
    Artillery: M777 is cleared. OFB will start supply of Dhanush soon.

    So what is really the problem?
     
  9. PaliwalWarrior

    PaliwalWarrior Regular Member

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    Well. As per last news

    There is a -8.5% allocacatoon for defence capital allocations over last year's for the three services combined
     
  10. garg_bharat

    garg_bharat Senior Member Senior Member

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    I think offered amount is 9B Euro. The news is that French are asking 11B Euro. So government is ready to pay 10B USD for 36 planes. These are completely made in France. I doubt there are any offsets.
     
  11. sasum

    sasum Atheist but not Communists. Senior Member

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    I give a link to the final offer made by MoD to Dassault. It is $7 billion, not €. Euro costs more and India never negotiates in other currencies. There is insistence on offset investment of 50% of the value of contract. It need not be Rafalla or related components though.
    http://m.rediff.com/news/special/revealed-price-is-holding-up-the-rafale-deal/20160126.htm
    Of course I believe both parties are still willing to give/ take more quarters. French needs this order more than us; it will set a bench-mark price for negotiating with other countries.
     
  12. Bornubus

    Bornubus Senior Member Senior Member

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    The problem is that you failed to understand what tin buckets means in the army,it isn't BMP 2.

    As for T 72 there won't be any more upgrade these 72s already upgraded to CIA standard with 1000 HP engine and Night fighting capabilities among other things.
     
  13. garg_bharat

    garg_bharat Senior Member Senior Member

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    Rediff is not a very good source.
     
  14. garg_bharat

    garg_bharat Senior Member Senior Member

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    Why Army cannot upgrade BMP-2?
    Logically that makes sense ($800M) until FICV arrives on the scene.

    How many T-72 have received upgrades? I quoted T-72B3 due to its better protection. What about counter-measures against ATGMs?
     

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