France has offered 30 percent out of the 50 percent offsets in the 7.89 billion Euros Rafale fighter deal for research and development programmes in missile and engine technologies in India.
The remaining 20 percent offsets will be given out as components of Rafale fighters. The offsets will be carried out by French companies Safran, Thales, MBDA and Dassault, all part of the Rafale project.
As per the initial agreed points, the French have offered to provide stealth, radar and thrust vectoring for missiles technologies besides others to DRDO and domestic defence firms.
“The French government has in principle agreed on these points under the offset commitments. Once a final contract for 36 Rafale aircraft is signed, the French government will give subject wise clearance and concrete talks will start,” a defence source was quoted as saying by PTI Thursday.
The French have also agreed in principle to collaborate on the Kaveri engine which lacks the real power thrust needed to fly the Tejas.
An upgraded Kaveri engine with 90 kN thrust compared to the existing 72 kN can be developed with French cooperation which can eventually be used for Tejas which currently uses an American engine.
“The negotiations on offsets were carried out last year with DRDO and some other agencies. Once the contract for the Rafales is signed, there will be a six months window to finalise the offset,” a source said.