New Delhi: The Indian Navy is set to formally start the cost negotiations with a French delegation on Thursday for the procurement of 26 Rafale Marine aircraft that will operate from its two aircraft carriers.
While all eyes are on how much the deal will eventually cost, ThePrint has learnt that it is likely to be close to Euro 4 billion, which comes to be a little less than Rs 40,000 crore. This will include the vanilla cost (bare cost) of the aircraft, besides missiles and maintenance contracts.
Sources in the defence establishment said that the Indian side invited the French side for the first round of talks Thursday. The French team will include officials from the defence ministry and industry, including original equipment manufacturers Dassault Aviation and Thales.
In December, ThePrint had reported that the Indian Navy has inched closer to getting 26 Rafale Marine aircraft, with France sending in a detailed bid and that a contract will be inked only after the general elections.
The sources said the focus is to ensure that the government-to-government contract is signed within this fiscal. This is because the delivery will begin only three years after signing the contract, which means it is imperative on the Indian Navy to sign the contract as soon as possible.
Asked if there was a provision for French handing over aircraft meant for its navy as emergency measures, the sources said that no such issue is being discussed as far the cost negotiations are concerned.
Talking about the cost negotiations, sources say that the final cost of the aircraft will be based on what the Indian Navy negotiators focus on. While the exact number is yet to be known, it can be bought cheaper if one follows the French operational concept.
Just like in France where the Navy and the Air Force operate the Rafale fighters, India will also do so since the IAF already has 36 of them. In France, the maintenance and stores for the Rafale is common, besides common simulators.
Similarly, if India decides to go in for common maintenance and stores, the cost of the overall contract can come down, a source explained, adding that the overall cost of the contract involves maintenance and infrastructure building contracts which are also significant.
The IAF has raised two Rafale squadrons — Hasimara and Ambala — which have their own stores and simulators.
Even at that time, many found it odd that the IAF would go in for two separate facilities when all the 36 Rafales could have been housed in one single base. However, since the IAF set up two separate bases, it was felt that this was done because the air force will be procuring more Rafales.
While the IAF is still looking for 114 Medium Multi Role Aircraft (MRFA), there is no forward movement on that.
As per the Indian Navy plan, it will be acquiring 22 single seater fighters and another four twin seaters. In August, ThePrint had reported that the Indian Navy was preparing to send bid papers to France but no joint acquisition was being planned.
Joint acquisition by the IAF and the Navy would have meant that the cost would have gone down and India would have another line of fighter aircraft manufacturing, besides the Tejas fighter. This is because Dassault would have then got the numbers to set up a production line in India.
(Edited by Tony Rai)
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