After Egypt, another agreement surprise? Reportedly, negotiations between the French and Indian Governments were underway Friday morning April 10, for the purchase of three squadrons of Rafale, 63 planes, for a total of 7.2 billion euros. “The discussions lasted all night, they are continuing this morning , ensured a close case without prejudging their findings. The idea is to be able to announce this contract during the visit to Paris of Narendra Modi, the Indian Prime Minister, Friday or Saturday. “
” The question of the Rafale is still under discussion and we should be able to move forward on mutually acceptable bases “, indicated to Mr. Modi BBC , owned by Dassault, published Thursday, April 9, on the eve of his arrival in Paris.
If the number of fighters finally ordered was not completely arrested Friday morning, the principle of the assembly would be granted. Specifically, the Indian government would play an option contained in the “Contract of the Century” 126 devices, Dassault granted in 2012. It provides for the purchase “off the shelf” of 63 additional Rafale, that is -dire made in France and not in India as provided in the main contract. New Delhi, this would quickly dispose of devices without waiting for the end of negotiations on the initial contract and, above all, without having to launch a new tender.
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Aging its squadrons
The Indian Air Force n ‘ has indeed been constantly alert his government in recent months on the aging of its squadrons, while the country faces frozen conflicts at its borders with Pakistan and China. The Indian Air Force plans to withdraw from circulation four MiG-21 squadrons, five squadrons of MiG-27 / UPG, and a squadron of MIG 21 bis 2017, losing ten squadrons in just one year .
According to the Indian press, the purchase of 63 Rafale could be accompanied nevertheless the abandonment of the main contract, information that was not confirmed in Paris. According to the blog “news warrior” who revealed the information Thursday, April 9, India had finally decided to abandon the tender launched in 2007 to return to the option agreement contract between governments.
Since 2012, when India had set his sights on the Rafale, after eliminating the other finalist, Eurofighter, negotiations bogged down. India demanded guarantees for accidents of combat aircraft, which can carry nuclear warheads, to which opposed French Dassault and its partners, arguing that they could control only the chain assembly in India, set up with the Indian Hindustan Aeronautics Limited (HAL).
The issue price
The French had been successful on this point, but a last sticking point concerned the overall price. The unit cost of a Rafale produced in India has indeed proved superior to that produced in France, due to the need to establish a comprehensive network of contractors, non-existent there, and train teams. The Rafale ‘make in India “, 108 copies are provided on the 126 contract, would have an additional cost of 8 billion euros, bringing the overall contract from 12 to 20 billion.
“This is the first time that India had decided to spend a tender of this magnitude precisely to protect against political interference,” says Rakesh Sood, former Ambassador of India France. But the stumbling blocks, the Indian press has echoed, multiplied. “ And the pressure that rested on the shoulders of the group members made by the Indian government to conclude the contract ” Century “was slow procedures “ adds Rakesh Sood.
Disagreements also exist between the Indian Air Force, who pleaded for fast acquisition of fighter aircraft, and the Ministry defense, conscious of the contract price. Relations between the Indian Air Force and the builder Dassault back to 1953, when India made the first airplane acquisition Dassault, Hurricane. It is then with the Mirage 2000 India won the Kargil war against Pakistan in 1999, in the foothills of the Himalayas.
A production until the end of 2016
This agreement, if it materializes, would remove some of the uncertainty related to the financing of the 2014-2019 military planning law (LPM). For several years, the French government is committed to ensure the production rate of the Rafale, with a minimum of eleven aircraft per year, not to undermine the chain of Dassault and its 500 subcontractors. However, the new LPM has awarded 26 Rafales for the French army, which ensures production only until the end of 2016. The state has provided for that date to stop his aircraft Dassault purchases to dedicate this budget other priority materials
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During the LPM, Dassault Rafale produce 66 at the rate of eleven aircraft per year. Excluding production for France, the 40 others must be purchased by foreign countries, otherwise Paris must acquire. With the 24 ordered by Egypt and those proposed by India, production for overseas would be ensured.
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