Bangalore: Dassault Aviation, maker of Rafale fighter jet which is in exclusive negotiations with the ministry of defence for close to three years now for the $ 20-billion Medium Multi-Role Combat Aircraft (MMRCA) tender, may have to abandon the plan over lingering issues.
This is despite the fact that bagging the MMRCA tender, which envisages purchase of 126 aircraft with an option for buying 63 more, is critical for Dassault. Contrary to initial expectations of a quick contract signature, Dassault-MoD negotiations have dragged for over two years.
As reported by FE earlier, cost has been an issue since the start besides the company’s reluctance to transfer sophisticated technology to India and meet offsets requirements. In the last few months, questions have been raised by Dassault regarding the role of HAL in the MMRCA.
Moreover, the French company is unwilling to be held liable for the quality, timely and on-cost delivery of the 108 aircraft to be license produced at HAL. This is in breach of tender conditions and has emerged as a major threat to speedy contract conclusion.
17/02/15 Huma Siddiqui/Financial Express
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This is despite the fact that bagging the MMRCA tender, which envisages purchase of 126 aircraft with an option for buying 63 more, is critical for Dassault. Contrary to initial expectations of a quick contract signature, Dassault-MoD negotiations have dragged for over two years.
As reported by FE earlier, cost has been an issue since the start besides the company’s reluctance to transfer sophisticated technology to India and meet offsets requirements. In the last few months, questions have been raised by Dassault regarding the role of HAL in the MMRCA.
Moreover, the French company is unwilling to be held liable for the quality, timely and on-cost delivery of the 108 aircraft to be license produced at HAL. This is in breach of tender conditions and has emerged as a major threat to speedy contract conclusion.
17/02/15 Huma Siddiqui/Financial Express
