The much-delayed ₹58,000-crore Rafale fighter jet deal with France was inked on Friday.
The contract to buy 36 Rafale fighter jets from French defence major Dassault Aviation in an effort to boost the fighting capability of the Indian Air Force has been in the making since 2007. It was in 2012 that Dassault Aviation bagged the contract following a competitive bidding process.
“The deal will give a potent, effective fighter that the IAF needed badly. This is the first such deal on aircraft in last 20 years, which is a uniqueness in itself,” Defence Minister Manohar Parrikar told reporters after signing the pact.
The deal was finalised with the signing of the Inter-Governmental Agreement (IGA) by Parrikar and his French counterpart Jean-Yves le Drian at the Ministry of Defence.
The aircraft will be bought by India in flyaway condition. The first delivery is expected to take place by October 2019. Thereafter, the remaining 35 jets will be delivered over a period of two and a half years, sources told BusinessLine.
India will be paying around ₹1,611 crore for each of the jets. The government is believed to have paid for six jets already costing around ₹9,000 crore, said sources. All the 36 warplanes will have specifications as per the need of the Indian Air Force.
As part of the offset obligations, the French industrial suppliers will discharge offsets for 50 per cent value of the procurement.
As a result, the Defence Ministry believes it will generate employment and the need for product support requirements will open up opportunities in warehousing and supply chain management in the country.
23/09/16 Nayanima Basu/The Hindu Business Line
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The contract to buy 36 Rafale fighter jets from French defence major Dassault Aviation in an effort to boost the fighting capability of the Indian Air Force has been in the making since 2007. It was in 2012 that Dassault Aviation bagged the contract following a competitive bidding process.
“The deal will give a potent, effective fighter that the IAF needed badly. This is the first such deal on aircraft in last 20 years, which is a uniqueness in itself,” Defence Minister Manohar Parrikar told reporters after signing the pact.
The deal was finalised with the signing of the Inter-Governmental Agreement (IGA) by Parrikar and his French counterpart Jean-Yves le Drian at the Ministry of Defence.
The aircraft will be bought by India in flyaway condition. The first delivery is expected to take place by October 2019. Thereafter, the remaining 35 jets will be delivered over a period of two and a half years, sources told BusinessLine.
India will be paying around ₹1,611 crore for each of the jets. The government is believed to have paid for six jets already costing around ₹9,000 crore, said sources. All the 36 warplanes will have specifications as per the need of the Indian Air Force.
As part of the offset obligations, the French industrial suppliers will discharge offsets for 50 per cent value of the procurement.
As a result, the Defence Ministry believes it will generate employment and the need for product support requirements will open up opportunities in warehousing and supply chain management in the country.
23/09/16 Nayanima Basu/The Hindu Business Line
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