Monday, February 01, 2016

India wants France to cut Rafale jet price further

New Delhi: Although French President Francois Hollande opened a new chapter in bilateral relations with India, the contentious pricing issue of the Rafale jets deal may drag on as New Delhi is seeking further price cuts.

India and France signed 30 agreements during Hollande’s visit last week including that for 36 fighter jets through inter-government transactions. Both Hollande and Prime Minister Narendra Modi said that the pricing issue was being resolved but failed to arrive at a conclusion before the French President left India.

The reason for the impasse, sources told Bloomberg TV India, is that the government expects more reduction in price than proposed this month.

“No timeline is firmed up for price finalisation but we expect progress soon. Budget allocation for Rafale purchase is likely if the price is finalised soon,” said an official familiar with the development.
31/01/16 Bloomberg TV India

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