Rafale deal to be signed on eve of Hollande’s India visit

Discussion in 'Indian Air Force' started by Sakal Gharelu Ustad, Nov 26, 2015.

  1. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    http://indianexpress.com/article/in...to-be-signed-on-eve-of-hollandes-india-visit/

    India and France are set to sign the deal for 36 Rafale fighter aircraft on the eve of French President François Hollande’s visit to India for the Republic Day celebrations. The draft contract, which envisages supply of the first fighter within 36 months of signing the deal, has been finalised.


    The supply of full complement of 36 fighters to the Indian Air Force (IAF) will be completed within seven years of signing the deal.



    The induction of the 36 fighters will add to the IAF squadron strength which is now down to 34. At least 44 fighter squadrons are needed to be comfortable against China and Pakistan.

    The proposal for buying 36 Rafale fighters from France in a government-to-government deal was announced during Prime Minister Narendra Modi’s visit to Paris in April.

    It followed a long-drawn tender for acquisition of 126 medium multi-role combat aircraft (MMRCA) for the IAF in which the Rafale had been selected as the L-1 or lowest bidder after a decade of evaluation, testing and negotiations. Mired in controversies over pricing and transfer of technology, the process was scrapped by Defence Minister Manohar Parrikar earlier this year.

    Industry sources said the price of a Rafale fighter in the current deal has been fixed at the 2007 base rate plus an escalation formula agreed upon by both sides. As per commercial bids received for 126 fighters, plus an increment of 5.5-7.5 per cent per year applied on different sub-systems, items and services as per the escalation formula, the final price for the 36 fighters is expected to be around $8.3 bn.

    The draft agreement states that all 36 fighters will be supplied by Dassault Aviation in a fly-away condition. To avoid any complications, the two sides agreed for the same SOP (standard of preparation or technical specifications) for the Rafale fighters as agreed upon in the tender for 126 aircraft.

    Sources said Dassault was keen to include improvements in the SOP, with limited change in pricing, but the Indian side did not want to introduce new elements in the negotiations.

    Defence ministry sources told The Indian Express that the clause for 50 per cent offsets, as mandated in the 126 aircraft proposal, shall be applicable to the current deal.

    According to industry sources, the offsets commitment will now be fulfilled through a private vendor. This is a major difference from the earlier deal, where public-sector Hindustan Aeronautics Limited (HAL) was to make 108 fighters in India.


    Anil Ambani-owned Reliance Defence Limited (RDL) is said to be the leading contender for discharging the offsets for the 36 fighter deal.


    Defence ministry sources say that Dassault and RDL have to fulfil the offset commitment.

    Confirming it is constructing a greenfield aerospace facility in Nagpur which will start production in FY 2016-17, RDL said it has not entered into an agreement with Dassault Aviation so far.



    Important points:
    1) Delivery within 7 years
    2) Involvement of private vendor instead of HAL
     
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  3. Immanuel

    Immanuel Senior Member Senior Member

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    Damn what a waste of money and time, 7 years to deliver '36 aircraft' and these bitches had gripes about slow LCA deliveries. We could easily have gotten 80 Super MKI for the same cost and all delivered before 2023.
     
  4. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    The deal is not yet signed and it would almost be a year by January. I would not be surprised if it is not signed in Jan-2016.
     
    Immanuel likes this.
  5. Bahamut

    Bahamut Senior Member Senior Member

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    Good IAF needed this deal,lets hope more come
     
  6. Bornubus

    Bornubus Senior Member Senior Member

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    TO be signed ............................
     
  7. J.A.

    J.A. Militants

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    Now India have 700+ air strikes in Air Force strenght.
     
  8. vishwaprasad

    vishwaprasad Regular Member

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    great news... Flanker and Rafale combo (not even mentioning Fulcrums and M2K) operating under awacs will make IAF a most potent airforce in Asia for at least next one and half decade.... I am sure that Rafale numbers will eventually go up as I can't imagine a professional force like IAF inducting only 36 new air crafts....
     
  9. Punya Pratap

    Punya Pratap Regular Member

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    New
    In boost for 'Make in India', Dassault may manufacture Rafale fighter aircraft in India
    By Manu Pubby, ET Bureau | 27 Nov, 2015, 07.05AM IST

    NEW DELHI: India's largest-ever military deal is likely to bring in big business for the private sector with the French side looking to set up a production centre for the Rafale fighter aircraft as well as a low-cost executive jet in India, besides sharing vital aircraft technology for the indigenous Tejas project.

    Officials familiar with the project have told ET that major partners for this 'Make in India' project are currently being identified by the French side and are likely to include Anil Ambani's Reliance Defence Systems, Noida-based Samtel and Bharat Electronics. These officials, both Indian and French, spoke on the condition they not be identified.

    Spokespersons of the Anil Ambani-led Reliance Group told ET "there is no development". Officials on the French side told ET, on condition of anonymity, that the agreement between Rafale and an Indian partner will be on the lines of the 2012 agreement between the French company and the Mukesh Ambani-led Reliance Industries.

    The NDA government had reformatted the UPA government deal and ordered 36 aircraft, instead of 126. The Rafale fighter deal, which will bring in at least $4.5 billion into 'Make in India' projects as per the contract being negotiated, is set to involve a third production line for the aircraft in India, French officials have told ET.

    While two lines for the fighter are currently active in France at the same facility, a third line in India would take care of export orders for the fighters and also possible future orders by the Indian Navy and Air Force. The line would also support the production of a low-cost variant of the 'Falcon' executive jet for the Indian and Asian markets.

    "It will not be possible to roll out any of the 36 fighters being acquired by India from the production line as it would take time to set up but future orders, including exports, will be fulfilled with the new line," a person involved in the discussions has told ET. "At most, the final painting of the last ten aircraft to be delivered to India could be carried out at the Indian assembly line. This itself is a very high technology process as the fighter has a special anti-radar coat," the person added.

    Besides the joint production facilities in India, the French side is also set to transfer some key technologies to DRDO that would benefit the Light Combat Aircraft (LCA) project. A complete list of the technology to be transferred is being finalised but would include several systems to make the LCA more effective.


    Technology to be transferred includes the air intake system for the fighter, an undercarriage for the naval variant of the LCA, cutting edge radar absorbing painting technology as well as an integrated production line software and management system for the fighter aircraft.

    While the main Rafale contract is likely to be signed this financial year, as was reported by ET, a separate contract for armament systems will be signed at a later date with French company MBDA. A partnership for transfer of technology and production could be inked with the Defence Research and Development Laboratory (DRDL) that specialises in advanced armaments.

    Engineer-General Stephane Reb, Director of the International Directorate of the DGA (General Directorate for Armament) of the French Ministry of Defence is in New Delhi this week to finalise the inter-governmental agreement draft that is likely to be signed before January 26 when French President Francois Hollande will visit India as the Chief Guest at the Republic Day Parade
     
  10. punjab47

    punjab47 महाबलामहावीर्यामहासत्यपराक्रमासर्वाग्रेक्षत्रियाजट Banned

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    Still don't see point of 250mil aircraft without any tech transfer.

    Can get entire squadrons for cost of few of these, not to mention higher maintenance & spare part cost.

    Rupee is going to slide, soon as Modi takes any 'right wing' action.

    So let's buy stuff in euros & dollars which will be double in 10 years.
     

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