French defence minister in India to push for $15 bn Rafale deal

Ever since deal has been agreed upon, both parties have failed to reach a consensus on pricing of deal

French defence minister Jean-Yves Le Drian who is on a two-day visit to India is expected to push for the $15 billion Rafale deal under which India will be buying 126 medium-range multi- role combat aircrafts (MMRCA) for the Air Force.

However, ever since the deal has been agreed upon both parties have failed to reach a consensus on the pricing of the deal putting a question mark on the agreement. Defence cooperation forms one of the pillars of India-France strategic bilateral economic relations.

It was earlier expected that the much-awaited deal, which is pegged as one of the world’s largest defence orders, will be signed during the French President Francois Hollande’s visit here in February this year. However, it was not signed then as negotiations were still on.

Le Drian, who had earlier visited India as part of President Hollande’s entourage, will meet his counterpart AK Antony during the visit. Officials told Business Standard, that the main purpose of the visit is to review the progress of the negotiations as delay in signing the deal has invited considerable criticism from  both sides.

The French defence minister will also be presenting a White Paper on Defence and National Security to Institute for Defence and Security Analyses (IDSA), which was released in April 2013 by President Hollande to Institute for Defence and Security Analyses (IDSA).

French firm Dassault Aviation had won the $15 billion contract to sell 126 French Rafale MMRCA to the Indian Air Force in January 2012. The plan is to import 18 of the fighter jets from Dassault directly while the remaining 108 will be manufactured in Bangalore by Hindustan Aeronatics Limited (HAL).

Le Drian is also scheduled to visit the Air Force base in Gwalior for a briefing on the Indian Mirage 2000 squadrons and interaction with pilots, officers and technicians who fly and maintain the fleet. Last month, the minister had said that the first batch of Rafale will be delivered to India by 2016-2017.

Last month on the sidelines of the Paris Air Show, senior officials from HAL and Dassualt met to discuss the final contours of the agreement.

India and France is also jointly developing short–range surface–to–air missile (SRSAM). During his visit, President Hollande discussed the matter with Prime Minister Manmohan Singh of the Rs.11,000 crore deal to research and develop Mirage 2000 aircraft.

France also plans to sell 197 helicopters to the Indian Army. This will be France’s second such attempt after a similar deal worth $600 million got cancelled in 2007.