Wednesday, November 23, 2016

Govt Re-iterates The Benefits Of The Rs 58,000 crore Rafale Fighter Jets Deal in Parliament

The induction of 36 Rafale aircraft will enhance the operational capabilities of the IAF. According to the Minister of State for Defence Dr. Subhash Bhamre, the costs of the 36 aircraft cannot be directly compared to the cost of the original MMRCA bids since the deliverables are significantly different.

Although there is no Transfer of Technology (ToT) involved in the procurement of the 36 aircraft, the provision for 50% offsets has been retained.  The delivery schedule, maintenance arrangement and product support under the Inter-Governmental Agreement are also more beneficial.

Following the signing of an Inter-Governmental Agreement (IGA) along with Aircraft & Weapons Package Supply Protocols and Technical Arrangement with the French Government on 23rd September, 2016 for procurement of 36 Rafale aircraft in fly-away condition, the deliveries of the fighter jets will commence from September, 2019, Dr Subhash Bhamre had earlier informed the Lok Sabha on November 18, 2016.

The Rs 58,000 crore deal executed by India to purchase 36 Rafale fighter jets from France is undoubtedly one the most well negotiated pacts and one that will bring along huge gains for the domestic aviation industry besides creating job openings for the people of India.

This deal is the first since the purchase of Sukhois from Russia in the late 90s and is considered a win-win for India, the most significant feature of this contract being the enhancements for India which even French aircrafts do not have.

In an exclusive chat with soon after the signing of the deal, Union Defence Minister, Manohar Parrikar said, “In any foreign deal, there are 3-4 things that have to be taken care of. First is the cost, which we have negotiated at a much lesser price than the earlier price being quoted by the French team.”
23/11/16 Defence Aviation Post