The proposed deal for acquisition of 36 Rafale fighter with France seems to be virtually in a limbo now with India digging in its heels and insisting that France offers a lower price for the deal that
The proposed deal for acquisition of 36 Rafale fighter with France seems to be virtually in a limbo now with India digging in its heels and insisting that France offers a lower price for the deal that is acceptable to it. Union defence minister Manohar Parrikar on Friday said he is a “tough negotiator” and wants the “best price” for Rafale fighter jets from France. However, the minister said the budget for the next fiscal takes into account the Rafale deal for which “adequate money” has been kept aside. But the two countries have been unable so far to clinch the deal despite several months of negotiations.
“I am a tough negotiator. Let me save money for the nation,” said Mr Parrikar. Stating that he was aware that the IAF needs aircraft, the minister added “I think a good buyer does not put his weakness in front. He always keeps his cards close to his chest. Please don’t ask me to disclose my cards in national interest.”
Asked if he was looking at any alternative to equip the IAF in case the Rafale deal does not go through, he said “many times it is better to cross the bridge when it comes”. Speculation is rife that India may rope in a foreign vendor as part of the Make in India programme to get a fighter aircraft manufactured completely in India under technology transfer in case the Rafale deal does not materialise.
The defence budget for the next fiscal takes into account the payments that will have to be made when the Rafale deal is signed, said Mr Parrikar. At least 15 per cent of the total payment will have to be made immediately, if and when the deal is signed. Speculation was that France wanted about 11.5 billion euros for the deal.
Speculation is already rife that France had wanted about 11.5 billion euros for the deal while India wants the cost lowered to about 8 billion euros. France had earlier apparently lowered the price——for 36 Rafale aircraft below the earlier per aircraft price that French firm Dassault, the manufacturer of the Rafale, had originally offered when India was negotiating acquisition of 126 Rafale aircraft——but India wants the price to be lowered further according to its expectations. But the delay is not good news for the IAF which desperately wants induction of new fighter aircraft.
