Rafale deal closer to a decision; goes for final review

New Delhi, Sep 1 (PTI) The multi-billion Euro deal for 36Rafales moved a step closer to a decision as the file on thefighter jets has been sent to the Prime Minister’s Office forfinal review and clearance. Defence sources said today the final report submitted bya team negotiating the much-anticipated Rafale deal withFrance has been cleared by the Defence Ministry. While officials remained tightlipped about the state ofthe deal but a high-ranking source when asked by PTI if it hasbeen moved for clearance by the Cabinet Committee on Security,said, "I would not say no". French sources have said they are expecting a positivedevelopment this month. During his visit to France in April last year, PrimeMinister Narendra Modi had announced that India would purchase36 Rafale jets in a government-to-government contract. Soon after the announcement, the defence ministryscrapped a separate process that was on to purchase 126 Rafalefighter planes, built by French defence giant DassaultAviation. The deal is expected to be worth around 7.89 billionEuros for the 36 fighter jets in fly away conditions. The weapon systems, part of the deal, will also includethe new age beyond visual range missile Meteor and Israelihelmet mounted display. The price of the deal was brought down from nearly 10billion Euros, as sought initially, due to various reasons,including tough negotiation by India, the discount offered bythe French government and reworking of some of the criteria. It is not clear if the price has been brought downfurther but India was seeking more. The new deal comes with the clause of delivering 50 percent offsets, creating business worth at least 3 billion Eurosfor smaller Indian companies and generating thousands of jobsin India through offsets. The commercial negotiations on the pricing of the planes,equipment and other issues began in mid-January this year. PTISAP GSNGSN