English
New Delhi, Sep 15: The much anticipated contract for 36 Rafale fighter jets is likely to be sealed soon as both the countries have finalised the date for completing the deal which will cost about Euro 7.87 billion. India and France will jointly sign the agreement on September 23. India has reportedly been able to save over Euro 590 million through tough price negotiations which began in January this year. Though the deal could have been firmed up earlier, issues like pricing and offsets took time as India wanted a better contract.
Following intervention by Prime Minister Modi late last year, France agreed for a 50 per cent offset clause. This means creating business worth at least three billion Euros for Indian companies, both big and small, and generating thousands of jobs in India through offsets. A high-level delegation from France would come to New Delhi for the formal signing of the contract, French sources said.
The delivery for the fighter aircraft is expected to begin in 2019, with an annual inflation capped at 3.5 per cent. The weapon systems, part of the deal, will also include the new-age, beyond visual range missile ‘Meteor’, and Israeli helmet mounted display. Last month, a report submitted by the team negotiating the Rafale deal with France was cleared by the Defence Ministry. The file was then sent to the Prime Minister’s Office for review and clearance.
The work on the IGA started after that, sources said. During his visit to France in April last year, Prime Minister Narendra Modi had announced that India would purchase 36 Rafale jets in a government-to-government contract.
Soon after the announcement, the Defence Ministry scrapped a separate process that was on to purchase 126 Rafale fighter planes, built by French defence giant Dassault Aviation.
(With inputs from PTI)
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest India News on India.com.
