Sunday, January 04, 2015

Ball is in France's court, says India on $20 billion Rafale fight jet deal

New Delhi: The multi-billion dollar Rafale fighter jet contract with France has run into rough weather over a guarantee clause and steep rise in price with India making it clear that the ball is in France's court as it looks at the option of buying more Russian Sukhoi-30 MKI warplanes as a back-up plan.
India is insisting that Dassault Aviation, which manufactures Rafale, cannot renege on the Request for Proposal (RFP) clauses, which it had initially agreed to. The situation has come to such a level that France has been forced to send an empowered delegation later this month to "solve all remaining issues" to salvage the contract.
A top Defence Ministry official had this week admitted that there were problems and said India could consider buying more Russian-made Sukhoi-30 planes if the proposed deal with France collapsed. Recalling the last month's meeting between Defence Minister Manohar Parrikar and his French counterpart, sources said French "were told categorically to stick to the RFP".
04/01/15 First Post
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