Friday, April 10, 2015

Rafale serious hopes of signing a big contract with India – Les Echos

The contract would cover 63 Rafale “Made in France” for an amount of € 7.2 billion. It could be announced this Friday or Saturday, on the occasion of the visit to France the Indian Prime Minister, Narendra Modi.

Francois Hollande confirmed Friday that a huge contract was in order for Dassault Aviation. The president said he hoped “advance” with the Indian Prime Minister on the Rafale folder.

“I hope that we can move forward during the visit of Prime Minister Modi, but there will be other meetings and we will see how we can finalize this contract” said the President of the Republic, told AFP on the sidelines of the inauguration of the replica of the Chauvet cave in Vallon Pont d’Arc (Ardeche).

India negotiates indeed buy 63 Rafale of the French aircraft manufacturer for an amount of € 7.2 billion, as well as the Le Monde reported on Friday on its website. “According to our information, the negotiations between the French and Indian Governments were underway Friday morning April 10, for the purchase of three squadrons of Rafale, 63 planes, for $ 7.2 billion,” writes The World. The agreement could be announced in the day or Saturday, said the newspaper.

The specialized Indian site Newswarrior soon showed yesterday, citing “top government sources,” a contract for 60-63 Rafale was about to be signed.

The discussions between France and India began there more than three years. But they have become bogged down over time the cost and assembly of equipment in India. Initially, New Delhi, which made industrial development the alpha and omega of its arms procurement policy, negotiating the purchase of 126 Rafale, 108 manufactured in India for a while estimated $ 20 billion dollars. Apparently, the Indian government has changed its strategy and buy a smaller number of devices manufactured in France, says Le Monde. A way for India to accelerate the process, says the Indian press.



First visit Modi in Europe

“The idea is to announce this contract during the visit Paris Narendra Modi, Indian Prime Minister, Friday or Saturday, “said a relative of the record cited by Le Monde. Information confirmed by Indian officials. Narendra Modi will make a joint statement with French President François Hollande, at 18:00 in Paris after their meeting.

No one was immediately available at Dassault Aviation for comment. The French Presidency has, for its part, already indicated that the Indian Prime Minister had “not in France specifically” for the market of Rafale and that the visit does not necessarily aimed to “snatch a contract.” Nuclear energy should also be included in the focus, with the French side hopes to make progress on the sale of six EPR nuclear reactors to India, representing a capacity of 10,000 megawatts.



Modi wants to boost investment

Strong economic performance in India, where growth is higher than that of China (see video below PwC challenges that India faces in becoming the third world power by 2030), Narendra Modi on his first trip to Europe. It was widely elected there nearly a year on the promise to boost investment and employment

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For now, if the order of the Rafale materialize, it would be a great achievement for a maligned unit from its first flight, there thirty years. There are only two months, Dassault had managed to sell its first combat aircraft to Egypt. The engine manufacturer Safran and Thales aerospace supplier also participate in this program.

Since 1998, the Rafale is used by the French army which, in total, has ordered 180.

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