New Delhi: Contrary to widespread belief, signing of the final contract to purchase 36 Rafale warplanes manufactured by French aviation major Dassault Aviation is likely to face further delay, even as both governments — India and France — are all set to sign an agreement stating India’s intention to buy the fighter jets during the visit of French President later this month.
The agreement will only lay down the objectives of both governments to continue negotiating the deal as a “symbolic gesture” to the visiting French President. The agreement, shaped as an Memorandum of Understanding between both countries, will only state that India will buy these jets from France while actual negotiations on pricing, offset obligations and changes in design will continue, sources told BusinessLine.
Negotiations, however, are far from being over with discussions stuck between both sides mainly on two issues. According to sources, pricing these 36 jets has become the most important sticking point. The French, it is learnt, is not ready to bring down the cost, which is pegged at €4-5 billion. India, on the other hand, has asked for further concessions.
10/01/16 Nayanima Basu/Business Line
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The agreement will only lay down the objectives of both governments to continue negotiating the deal as a “symbolic gesture” to the visiting French President. The agreement, shaped as an Memorandum of Understanding between both countries, will only state that India will buy these jets from France while actual negotiations on pricing, offset obligations and changes in design will continue, sources told BusinessLine.
Negotiations, however, are far from being over with discussions stuck between both sides mainly on two issues. According to sources, pricing these 36 jets has become the most important sticking point. The French, it is learnt, is not ready to bring down the cost, which is pegged at €4-5 billion. India, on the other hand, has asked for further concessions.
10/01/16 Nayanima Basu/Business Line
