The government's negotiations with Dassault on the $20-billion deal to buy 126 medium multi-role combat aircraft have come to a standstill after the French aviation firm informed authorities that it cannot be held responsible for the 108 aircraft to be produced by HAL (Hindustan Aeronautics Ltd).
What started as a point of difference between the defence ministry and Dassault over the role of HAL escalated after the firm told Indian negotiators that the government will have to sign separate contracts — one with Dassault for 18 'fly-away' aircraft and another with HAL, which will produce 108 jets under licence. Dassault said it will supply manufacturing kits and equipment to HAL on time after which the contract with HAL will take over and Dassault will play no further role.
05/04/13 PranabDhalSamanta/Indian Express
