India in September 2016 inked a direct deal with the French government to purchase 36 new Rafale fighter jets in a 7.87 billion euro deal that is likely to bring major work to the Indian private sector in terms of offsets under the make in India policy.
The Rafale deal for 36 jets includes over 3 billion euros of work for
the Indian industry over the next 7-8 years according to top defence
ministry officials. "This has a huge potential to develop direct and
indirect employment opportunities in India," the official said. Besides
high end technology like engine know-how, major structural assembly is
also likely in India, besides a chunk of avionics work.
India will also get latest weapons like the Meteor and Scalp missiles as
part of the contract, besides a 5 year support package that assures
high availability of the fighter. India will pay a 15 % advance and
deliveries are to start in three years.
The deal was inked after negotiations that last close to 18 months, with
Indian negotiators finally bringing down the price by 328 million
euros.
In November 2017, Congress alleged a 'huge scam’ in Rafale fighter jets
deal. Saying that the contract violated the procurement procedure, the
Congress party blamed the government for promoting of 'crony capitalist
friends’ at the cost of a defence public sector unit, Hindustan
Aeronautics Limited
Congress alleged that the deal signed with France does not cater for
technology transfer and has caused an 'insurmountable' loss to the
exchequer. The Rafale deal has a 50 percent offset clause, a large part
of which is to be executed by a joint venture company of the Anil Ambani
owned Reliance Defence.
India Specific Enhancements
The Rafale deal caters to specific Indian air force needs. The fighter jet will be modified by France to meet the following:
VITAL Stats
BEST Vs LATEST
The Rafale will be India's most capable fighter aircraft. These,
according to defence ministry officials, are the major capability
differences it will make compared to the current best - the Su-30MKI.
Loitering Capability
WEAPONS: India has managed
to negotiate the acquisition of the latest weapons package for the
Rafale. These are the new weapons, beyond the standard package.
SCALP: a precision long
range ground attack missile that can take out targets with extreme
accuracy. Has a range of 300 km, capped by the missile technology
control regime.
METEOR: a beyond visual
range air to air missile that is possibly the best in its class. Can
take out enemy aircraft at range of over 100 km.
economictimes
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