MMRCA deal will materialise soon: Antony

Defence Minister A.K. Antony Thursday said negotiations to calculate "life-cycle cost" in the purchase of the medium multi-role combat aircraft (MMRCA) were not settled yet but he was hopeful that the contract will materialse in the coming fiscal.

Talking to media persons at Defexpo '14 here, Antony denied there was any delay in concluding the MMRCA deal.

Antony said there were some complaints about the procedure to calculate life-cycle cost. "That's still not settled... (But) that is not affecting the process," he said.

The minister said that before taking the matter to the Cabinet Committee on Security, the defence ministry wanted clear cut answers on life-cycle cost of the combat aircraft.

"We do not want to shortcut the procedures," Antony said.

He said the ministry has already spent 92 percent of its capital budget for 2013-14 fiscal and there was no money this year for new projects.

"Major procurements are humanly possible only in next financial year," Antony said.

"(I hope) MMRCA will materialise next year," he said.

French firm Dassault Aviation bagged in 2012 the $10 billion deal for purchase of 126 Rafale medium multi-role combat aircraft (MMRCA).

Officials said the MMRCA deal is "complicated" and the contract has "technicalities and legal issues".