Rafale talks to restart, French negotiators arrive on March 29

Ajay Banerjee

Tribune News Service

New Delhi, March 23

Two months after India and France disagreed on the pricing of the 36 Rafale fighter jets, the two sides are set to re-start negotiations on the issue.

India, in January this year, did not accept the price quoted by Rafale manufacturers—Dassault Aviation. The company was asked to come up with a fresh quote on pricing. Sources said French negotiators would reach New Delhi on March 29.

Within the Ministry of Defence, a benchmark figure has been decided upon and in no way this can be changed. Sources said the benchmark was close to $7 billion (Rs 46,000 crore, as on today’s dollar rates). Anything beyond that would be impossible to justify within the country.

During the three-day visit of French President Francois Hollande in January, a memorandum of understanding (MoU) was signed as the first step towards signing a formal inter-governmental agreement (IGA). Only the pricing had to be decided. Specific aspects were discussed on reducing the price, a top functionary said.

Last-minute efforts to ink the IGA for the purchase of jets during Hollande’s visit had come to a naught as New Delhi was not happy with the pricing.

The French President was quoted as having cited a figure of $9 billion for 36 jets, including two types of missiles (air-to-ground and air-to-air), training of pilots, bombs and base facilities for planes. It would translate into Rs 59,000 crore or Rs 1,630 crore per piece. Indian negotiators are willing to pay around $7 billion or Rs 46,000 crore (Rs 1,180 crore per piece).

The IAF is now at its lowest combat strength in more than a decade. The IAF has informed the government of the gravity of the situation.

The IAF, with only 33 squadrons (16-18 planes in each), is nine short of the government mandated 42 squadrons needed to tackle a simultaneous two-front war with China and Pakistan.