India and France could ink a major defence deal during French President Francois Hollande’s visit for the Republic Day celebrations in India. The two countries are likely to sign the deal for 36 Rafale fighter aircrafts in flyaway condition.
Prime Minister Narendra Modi had announced the intention to buy 36 Rafale jets off the shelf during his visit to France in 2014.
“The two leaders (Modi, French President Fracois Hollande) agreed to conclude an inter-governmental agreement for supply of the aircraft on terms that would be better than what is conveyed by Dassault Aviation as part of a separate process underway,” the statement said.
Meanwhile, Defence Minister Manohar Parrikar is hopeful that India will negotiate price up to 25% less. The advance fighter jet will cost India 75 million euro each instead of 105 million euro quoted earlier. The supply of full consignment of 36 fighters to the Indian Air Force will be completed within seven years of signing the deal.
The price per aircraft not only includes its own cost but also that for maintenance, training of pilots and technicians, armaments and spares.
Qatar has recently signed a deal worth over $7 billion for 24 Rafale jets. This includes MBDA missiles and the cost for the training of 36 Qatari pilots and 100 technicians. The value of each aircraft thus comes to over $290 million.
The defence deal will be a big statement for India-France strategic ties. With the purchase, the government hopes to tide over the shortage of fighter jets in the Indian Air Force (IAF).