INDIA TO WAIT TILL RAFALE LOWERS COST
India will not be tied down to a timeline on the Rafale deal and is prepared to wait it out for the French to lower the cost, sources have indicated.
Sources also indicated that even in the run-up to French President Francois Hollande’s visit, the Indian government had decided that it was not going to be pushed into a corner on time lines due to the presidential visit. “When you are acquiring a product, you look for the best price. Why should we set ourselves a time line,” sources said.
As it turned out, the Indian government stood its ground due to which the two sides could not mutually agree on the cost of the deal.
Speculation is already rife that while France wants about 11.5 billion euros, India wants the cost lowered to about 8 billion euros.
But the development is bad news for the Indian Air Force (IAF), which desperately wants modern fighter aircraft to boost the number of fighter aircraft squadrons.
The developments have also become an example of how urgently-needed acquisitions for the armed forces have been delayed by several years, adversely impacting the operational preparedness of the three services.
In this case, the “request for proposal” (RFP) was issued way back in 2007 for 126 medium multi-role combat aircraft, a race which Dassault ultimately won after being selected as the lowest bidder.
But after protracted con- tract negotiations between India and Dassault, the proposed deal made no headway, following which India decided last year, during PM Narendra Modi’s visit to France, that it would acquire 36 Rafale fighter aircraft directly from the French government by a separate process, citing the operational necessity of the IAF.
DC CORRESPONDENT
NEW DELHI, JAN. 26