France has agreed to an Indian government demand to invest a part of the multi-billion dollar Dassault Rafale fighter jet purchase in ‘Make In India’ program as part of the deal.
“The French manufacturers of the Rafale fighter will commit to making investments worth $4.5 billion in the Indian industry as part of the deal. The French side has accepted in principle a 50% offset clause, which requires the Rafale manufacturers to invest half the deal value in India, the government will also liberalize its stringent defense offsets policy to address some specific concerns of the manufacturer,” Economic Times news daily quoted an unnamed French official as saying Monday.
“A top team from Paris, led by Engineer-General Stephane Reb, director of the International Directorate of the DGA (General Directorate for Armament) of the French ministry of defense will be in Delhi on Tuesday to work out final price negotiations and take the deal to the final stage,” the news daily reported.
The investments in India could include civilian projects that companies like Dassault and Thales are pursuing. One of the Make in India investments is likely to be in the manufacturing of components of the French Falcon executive jets as well as in the smart city projects of Thales.
According to earlier reports, the French have proposed 8 billion euro for the deal, an increase of some 20% over what was discussed under the earlier negotiations for 126 aircraft. This was a sticking point for the Indians while for the French, it was offsets as demanded by the Indian MoD and modern weapons as demanded by the Indian Air Force.
The unit price of the 36 Rafale aircraft was 25 percent higher than the $200-million price tag offered to the Indian prime minister during his April visit to France, according to the reports which was due to the 'add-ons' in the form of offsets and the weapons configuration.
However, French media reports quoting aides of the defense minister early this month said that 'major points of differences' have been ironed out and that the deal could happen in the foreseeable future.
Negotiations between India and France on the purchase of 36 Dassault Rafale aircraft could drag on till this year end due to differences over price among other issues. France wants the Rafale fighters for India to be priced at the same level as what has been contracted with Egypt and Qatar, French media reported earlier this week
The sudden decision by French Defense Minister to cancel a planned visit to India on his way back from Malaysia is an indication of all is not well in the negotiations of the 36 Rafale fighter jets sales to India. The defense minister Jean-Yves Le Drian who was to arrive in New Delhi on September 2 to sign an inter-governmental deal on the purchase of 36 Rafale fighter jets cancelled his plans at the last minute
The French defense minister has submitted a proposal to Malaysia for the purchase of 18 Rafale fighter jets. "We provided a full offer to the Malaysian authorities; this offer will be studied by the authorities
The Indian defense ministry has identified 25 defense manufacturing projects under the Make in India initiative. "We have initially shortlisted these
Indias Bharat Electronics (BEL) will showcase its indigenisation efforts at the ‘Make in India Week to be held from February 13-18, 2016, at the MMRDA Grounds, Bandra-Kurla Complex, Mumbai. BEL will showcase ‘Akash surface-to-air missile system, Weapon Location Radar (WLR), Ground Penetrating Radar (GPR), Through Wall Radar (TWR), Hull Mounted Sonar (HUMSA), Software Defined Radio (SDR Manpack), 40 mm L-70 anti-aircraft guns and other products indigenously designed and developed either by BEL or in collaboration with Defense Research Development Organization (DRDO) at the Defense Pavillion, BEL said in a statement Wednesday
Frances Dassault Aviation is not attaching any firm time limit to the conclusion of negotiation and the signing of a contract with India on the purchase of 36 Rafale aircraft. Dassault Aviation chief Eric Trappier said on Friday that the signing of the Indian order could happen “in the weeks or months ahead
France is increasing its defense budget for 2016 by $671 million to $32 billion that will include orders of three A400M transporters, nine Rafale fighters, five Tiger helicopters, a Barracuda Submarine and a new frigate. The French governments 2016 budget has also allocated $4
Poland and other East-European NATO allies threatened to cancel defence deals with France if it sold the Mistral Warship to Russia. This information has been revealed in recently released transcripts from the French Senate's International Affairs Committee that Eastern European NATO member states have put "significant pressure" to scrap the USD$ 1
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