New Delhi: The ongoing Indo-French negotiations for the purchase of 36 Rafale fighter jets has run into rough weather over offset clause and tweaking of weaponry technology which is driving up the cost.
Defence sources said one of the main stumbling block was the offset clause that India is insisting on, something which the French says will drive up the cost of the the aircraft.
Offset policy was first introduced as part of the Defence Procurement Procedure (DPP), 2005, under which a foreign company has to invest back a portion of the deal into India.
Another issue is IAF seeking modifications on the Rafale so that a particular set of weapons could be integrated in the Rafale instead of the ones being offered by the French.
12/08/15 Zee News
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Defence sources said one of the main stumbling block was the offset clause that India is insisting on, something which the French says will drive up the cost of the the aircraft.
Offset policy was first introduced as part of the Defence Procurement Procedure (DPP), 2005, under which a foreign company has to invest back a portion of the deal into India.
Another issue is IAF seeking modifications on the Rafale so that a particular set of weapons could be integrated in the Rafale instead of the ones being offered by the French.
12/08/15 Zee News
