Cost issues holding up Rafale deal: Parrikar

QUEPEM (GOA): Defence minister Manohar Parrikar on Monday said cost issues were holding up the multi-billion euro Rafale deal. He said the government was “very serious” about the deal to buy 36 French-made Rafale warplanes and “a final conclusion” could be expected soon.

The minister was taking to reporters after inaugurating Def Expo-2016, a military systems’ exhibition attended by 1,055 Indian and foreign firms eyeing alliances under the Make in India initiative for the defence sector.

He announced India’s new defence procurement rules aimed at accelerating the indigenisation plan and speeding up critical acquisitions. India is the largest importer of weapons globally, sourcing 65% of its military requirements from abroad. He said the Centre had tweaked weapon-buying norms to address the concerns of defence manufacturers and suppliers.

Parrikar said the policy could be reviewed after six months as “nothing is perfect.”

The Rafale deal is crucial for the IAF that is grappling with a shortage of fighter squadrons.

IAF vice chief Air Marshal BS Dhanoa had said India did not have sufficient number of warplanes to fight a two-front war, setting off alarm bells about its ability to tackle a combined threat from China and Pakistan.

The ministry is also giving finishing touches to a policy on “strategic partners” to allow Indian and foreign firms to collaborate on building warplanes, advanced submarines and helicopters.