Mumbai: Even as India is to discuss again France the $22 billion deal to supply 126 Dassault Rafale fighter jets to the Indian Air Force, a big team from Airbus is set to land in India on January 21, ahead of US President Barack Obama’s visit. The timing of the visit is significant, say informed sources.
Airbus which had held 46.32 per cent of Dassault Aviation, had sold 8 per cent of the company back to Dassault for $979 million late last year, said sources, adding that most of the parts of the Rafale fighter jets would come from Airbus. Top officials visiting India at this time is aimed at ensuring France’s credibility as a reliable supplier of weapons, according to sources.
The Rafales deal has been hanging fire ever since Dassault Aviation won the contract in 2007. The original conditions had implied production of the initial 18 aircraft in France, with the remaining 108 to be manufactured at the Hindustan Aeronautics Limited (HAL) facility, under a technology transfer agreement.
“The $22 billion order is not the problem. The work share pattern of the 108 aircraft to be made in India is the bone of contention,” said an official in the know, speaking on the condition of anonymity. “Of the 108 aircraft, will HAL manufacture 100 per cent, or 60 per cent, or 30 per cent of each jet, it is being worked out. Since there are several other Indian manufacturers who would supply and manufacture the rest of the parts, their names and work shares are all being sorted out,” said the official.
20/01/15 Amrita Nair/Ghaswalla/Business Line
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Airbus which had held 46.32 per cent of Dassault Aviation, had sold 8 per cent of the company back to Dassault for $979 million late last year, said sources, adding that most of the parts of the Rafale fighter jets would come from Airbus. Top officials visiting India at this time is aimed at ensuring France’s credibility as a reliable supplier of weapons, according to sources.
The Rafales deal has been hanging fire ever since Dassault Aviation won the contract in 2007. The original conditions had implied production of the initial 18 aircraft in France, with the remaining 108 to be manufactured at the Hindustan Aeronautics Limited (HAL) facility, under a technology transfer agreement.
“The $22 billion order is not the problem. The work share pattern of the 108 aircraft to be made in India is the bone of contention,” said an official in the know, speaking on the condition of anonymity. “Of the 108 aircraft, will HAL manufacture 100 per cent, or 60 per cent, or 30 per cent of each jet, it is being worked out. Since there are several other Indian manufacturers who would supply and manufacture the rest of the parts, their names and work shares are all being sorted out,” said the official.
20/01/15 Amrita Nair/Ghaswalla/Business Line
