India finally signs deal with France for 36 Rafale fighters
Rahul Bedi, New Delhi - IHS Jane's Defence Weekly
23 September 2016
India signed an inter-governmental agreement (IGA) with France on 23 September in New Delhi for the purchase of 36 Dassault Rafale fighters in flyaway condition for EUR7.9 billion (USD8.82 billion).
Indian defence minister Manohar Parrikar and his visiting French counterpart, Jean-Yves Le Drian, signed the aircraft deal for the Indian Air Force (IAF) 17 months after the procurement was announced in Paris in April 2015. The IGA includes the option for 18 supplementary fighters at the same price, taking a flat 3.5% inflation rate into account.
Officials said India's Ministry of Defence (MoD) would pay 15% of the sum in advance to French aircraft manufacturer Dassault, which will begin deliveries of the fighters in 36 months and complete them in 66 months.
The MoD, however, has yet to sign the final contract with Dassault, which is responsible for offsetting 50% of the overall contract value in India through co-operation with the country's military-industrial sector.
The offsets under negotiation are expected to be split 30:20 between domestic aeronautics programmes and the licenced manufacture of Rafale-related components.
Officials said the Rafale deal includes EUR3.4 billion for the platforms and EUR710 million for the weapons package, which comprises MBDA's MICA and Meteor air-to-air missiles with strike ranges of 70 km and 150 km, respectively, and the Storm Shadow/SCALP stand-off attack missile, which has a 250-300 km range.
India is to pay EUR1.7 billion for customising the 36 Rafales to meet 14 IAF requirements, including the integration of Israeli helmet-mounted displays, as well as indigenously designed missiles and electronic warfare, datalink, and identification friend-or-foe systems.
The fighters will also be customised for SPICE bomb-guidance and range-extension kits, which the IAF plans to acquire from Israel's Rafael, IAF sources told IHS Jane's .
Aircraft spares, hangars, and two maintenance, repair, and overhaul facilities in eastern and northern India are set to cost EUR1.8 billion, while the performance-based logistics (PBL) deal for the fighters is priced at EUR353 million.http://www.janes.com/article/64054/india-finally-signs-deal-with-france-for-36-rafale-fighters