Wed, 14 Sep 2016-10:10pm
, New Delhi , PTI
Once the IGA is firmed up, the document will
go back to the Cabinet Committee on Security for a final clearance. The deal is
virtually done and will cost about Euro 7.87 billion.
The much anticipated contract for 36 Rafale
fighter jets is likely to be sealed soon as both the countries have finalised
the details for the deal which will cost about Euro 7.87 billion.
Government sources said the cost, offsets and
service details have been finalised and the work is being done on the Inter
Governmental Agreement for the deal. A "working team" from France is
already in town with their own translators and are going through the contract,
running into several thousand pages, with their Indian counterparts. The
sources said that once the IGA is firmed up, the document will go back to the
Cabinet Committee on Security for a final clearance.
They said that India has 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
could come down 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.
Original post: dnaindia
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