July 12, 2013

Indian MMRCA Bill Balloons To $17 Billion

The value Indian MMRCA deal is set to inflate to a whopping $17 billion from the original $12 billion by the end of this year thanks to the falling Indian rupee.
The rupee currently stands at INR 59. 80 against the dollar and economists predict this number could rise up to INR 65 by the end of this year.
At the time of the announcement in January 2012, the rupee was being traded at INR 42 against the dollar and the deal was then valued at approximately $12 billion for 126 fighter jets.
With the current value of the rupee, the deal could potentially be worth $15 billion. However, if negotiations are postponed until later this year India may very well end up with a $17 billion bill from Dassault.
The deal was originally expected to be concluded by June 2012; however both sides have been unable to reach an agreement.
Earlier last month, top executives from HAL and Dassault Aviation met on the sidelines of the Paris Air Show to discuss the progress of ongoing projects.


1 comment:

  1. Scrap the 17$ billion MMRCA deal as its sheer watse of taxpayers money,instead go for the stealthy SU30MKI,SU35 to be the backbone of our airforce.