With Rafale deal stuck, Eurofighter looks to swoop in

Image
Press Trust of India New Delhi
Last Updated : Mar 12 2015 | 10:02 PM IST
With the multi-billion dollar contract for Rafale jets caught in the doldrums, the UK today hoped there would be an opportunity for the Eurofighter aircraft to get back into the race with a "very competitive bid".
However, the defence ministry here has made it clear that as per the Indian procurement rules, lateral entry is not allowed and the only way out if the negotiations with Rafale falls through is re-tendering.
"We are aware that the process of dealing with Dassault (the French manufacturer of Rafale) has not gone completely smoothly and there may be an opportunity for Eurofighter at some stage," British Foreign Minister Philip Hammond, who arrived in India yesterday on a two-day visit, told reporters at a press conference here.
He said that if the opportunity does arise, Eurofighter has a "very competitive offer" to make.
"We have been working very hard over the last couple of years to sharpen our aircraft to make sure that if the opportunity arises, we will be very well placed to bid," he said.
The British minister, however, made it clear that he has not raised the issue during his visit.
"I would not raise it because we respect the Indian procurement process. It would be wrong and improper to raise it at this time," he said.
The Rafale deal for 126 jets is estimated to cost over USD 20 billion over the next decade and is considered to be the biggest global defence tender.
India had chosen Dassault's Rafale over the Eurofighter Typhoon, which is built by a consortium of companies from the UK, Germany, Italy and Spain.
However, the final negotiations with Dassault have been stuck for the last three years.
"We have to let the process run its course," Hammond said adding while noting that India's official position is that this competition has not been opened up.
"But of course, if progress is not made, we anticipate there might be a point where the competition is opened up again for other bidders," he said, adding that the UK is looking forward to that in order to have an opportunity to present Eurofighter's bid.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Mar 12 2015 | 10:02 PM IST

Next Story