No final decision yet on Dassault aircraft deal: Govt

New Delhi, March 17

Negotiation is taking place for procurement of medium multi-role combat aircraft from Dassault Aviation France but “no final decision” has been taken, the government informed the Rajya Sabha today.

Defence Minister Manohar Parrikar also said review of existing fleet and induction of new aircraft is a continuous process and such a review is carried out keeping in view the operational requirements of the Air Force.

On whether fifth-generation fighter aircraft (FGFA) are in place for the Indian Air Force to have superior air strike capabilities, he replied in a negative.

French Defence Minister Jean-Yves Le Drian had last month held talks here with Parrikar to salvage the multi-billion Rafale contract even as a deadlock continues to hold up the deal.

As the two ministers met, the Cost Negotiating Committee (CNC) is understood to have submitted its report to the Ministry of Defence.

Le Drian met with Parrikar during which the French Minister took up the issue of the Rafale fighters manufactured by Dassault Aviation.

India had selected Rafale for the deal in 2012 but the final contract is yet to be signed. While 18 jets are to be bought off the shelf, 108 are supposed to be manufactured here by Hindustan Aeronautics Limited (HAL).

The main issue concerns the pricing, which is basically the production cost in India, and Dassault’s reluctance to stand guarantee for the 108 fighters to be built by state-run HAL.

Parrikar made it clear that the French defence major will have to stick to the RFP document as the multi-billion dollar Rafale fighter jet deal hangs in balance.

“The pricing will be decided on the basis of the Request for Proposal (RFP),” he said.     Asked about the guarantee clause, he said the issue was between the French firm and the HAL.

Speaking to reporters in the Parliament premises, the minister said he wants the matter to be “expedited”.

The French Rafale and the Eurofighter Typhoon were the only ones left standing after years of tests on technical and other aspects vis-a-vis the move to acquire Medium Multi-Role Combat Aircraft.

Rafale was shortlisted in 2012 but since then the final contract negotiations have been stuck on pricing and guarantee clause among others. India insists that Dassault will have to stand guarantee for the aircraft to be  manufactured by HAL. Another issue is the high life-cycle cost with India indicating that the prices have more than doubled than what was agreed in the RFP. — PTI