Gessler
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The unfortunate fact though, is that India simply does not have the funds to buy 114 jets of the ilk that are competing here (Rafale, Typhoon, US planes...ignore Russians).yee loo bhaaeee ....
30 characters ki jay
With the required licensed production, the cost to manufacture will undoubtedly be considerably higher than off the shelf buy. Yes, money goes back into the system that way, but still upfront cost takes it's toll on capital expenditure.
Say Rafale or Typhoon wins this competition. The cost of a deal will be in excess of $30-35 billion because of the licensed production clause. We do not have this kind of money to spare. After 36 Rafales IGA and S-400, we are spent. The appetite for large deals is not there for the next 5-6 years at least, shorter if any major rightsizing happens on the fronts that are bloated sinkholes for expenditure (Army).
The very fact that even an Acceptance of Necessity (AON) for the 114 jets has not been issued yet (let alone RFI and RFP) shows this competition for what it really is for the moment - a time-pass.
We are in no position to sign this deal before 2025. Meaning first squadrons cannot be formed before 2030. So relax.
Only real way to fill the numbers with some high-end jets in meantime is with either/or:
1) Continue to place additional off the shelf orders for Rafales in 36 batch increments. Which will undoubtedly come with increasing locally produced content as DRAL infra is in place.
2) Forego the local production in its entirety and just sign off on a G2G for 114 jets. That should knock off a significant chunk of the upfront cost.
No matter what they say now, they will have to deal with these realities sooner or later. Just like how the reality manifested itself when it became apparent we were in no position to sign for 126 Rafales with licensed production.