India’s $20 billion deal to buy Rafale fighter jets may not conclude this financial year as negotiations are still to be completed without which budgetary provision cannot be made.
The Indian budget for fiscal 2014-15 is scheduled for July during which a higher allocation for defence as compared to last year could be made. However provision for the Rafale MMRCA purchase seems unlikely as the Indian MoD is yet to conclude negotiations with Dassault. A huge capital expenditure of this type is budgeted over several year as per the schedule of payments agreed upon.
Experts say that even if the negotiations are concluded and contract signed this year, the earliest a financial provision can be made would be in the fiscal 2015-16 budget. This means, the earliest the aircraft to be bought in fly-away condition could arrive in India, will be 2018-19.
Meanwhile, fresh hurdles in the MMRCA negotiations have been reported in the Indian and international media. Hindustan Aeronautics Ltd (HAL) is yet to finalize the cost of the Rafale to be license-manufactured in India. This is being cited as a major concern for the delay in concluding the negotiations. The MoD wants an estimate of what it will cost to license-manufacture the aircraft at HAL in India which the latter is yet to provide.
In addition, it wants a guarantee from HAL as when each of the licenced-manufactured aircraft will be delivered to the IAF. This is because delay means cost escalation. HAL is reluctant to give this guarantee, according to the reports.
The Indian MoD and the IAF have had to grapple with delays concerning HAL’s other projects, namely the Su-30MKI and the Hawk trainer aircraft. They do not want a repeat of this with the Rafale.
Dassault is preparing to recieve a contract for 72 Rafale jets from Qatar marking its first export order. According to a French government official, a contract would probably come in two batches of 36 aircraft
Since June 2, four Rafale fighters of the French air forces 3/30 “Lorraine” squadron have deployed at Jodhpur air base, in India, to take part in the bilateral “Garuda” exercise. This is the fifth time the two countries hold this exercise, which will end on June 13
Ahead of the conclusion of the financial negotiations in the MMRCA deal, Dassault has pulled out all stops in raising its sales pitch to the Indian government. Showcasing its full might, the Rafale is participating for the first time in the Garuda V exercises against the Indian Air Forces Su-30s
The Rafale fighter detachment stationed at the tactical air base in Malbork, Poland was relieved by Mirage 2000 fighters, according to the French Air Force. The relief force consists of two Mirage 2000-5 from Luxeuil Air Base and two Mirage 2000Cs from Orange air base
The French navys Flotille 11F combat aviation squadron, based at Landivisiau, has taken delivery of its first Tranche 4 Rafale Marine, designated Rafale M40. This aircraft is the first to be equipped with systems and equipment that substantially improve its combat capabilities as well as its air defense missions for the protection of national airspace
Qatar could intensify its interest in procuring Rafale jets when its new Emir, Sheikh Tamim Ben Hamad Al Thani visits Paris on June 23, the La Tribune financial website reported on Wednesday. La Tribune, citing various sources, said that the Emir might announce during his visit that Qatar had opted for the Rafale and would open exclusive talks with Dassault Aviation
In his first meeting with his French counterpart Jean-Yves Le Drian, Indian Defense Minister Manohar Parrikar raised the MMRCA deal with Dassault and said it would be "resolved in a fast-tracked manner". This is the second visit to India by the French defense minister in the past six months and the first since Manohar Parrikar became the defense minister
The Indian MMRCA deal with Dassault is expected to be concluded by the end of this fiscal year, according to Dassault Aviation CEO Eric Trappier. The final phase of exclusive negotiations on the contract, estimated at $15 billion, should conclude within India's current budget year ending in March 2015, Trappier told reporters in Paris, according to local media
With no end in sight for the negotiations between the Indian MoD and Dassault over the purchase of the Rafale fighter, Rosoboronexport and Eurofighter have offered price drops to swing the deal their way. Some official word was expected from the Indian MoD about the Medium Multi-Role Combat Aircraft (MMRCA) during the last meeting of the Defence Acquisition Council
Indias long-awaited MMRCA project with Dassault could be affected in the wake of New Delhis decision to stay all future projects with Finmeccanica, its subsidiaries and affiliates. Finmeccanica holds a 25 per cent share in MBDA, a joint venture with EADS (now Airbus) and BAE Systems, which is pitching its Meteor air-to-air missile to India as a weapon for its planned fleet of 126 Rafale fighters
India hiked its military spending by 12.43%
Britain still eyeing the MMRCA fighter jet deal.Britian still believes it can override the Frances Rafale multi-billion dollar combat jet bid with Eurofighter
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