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India is likely to buy about 60 Rafale combat jets from Dassault Aviation instead of 126 aircraft proposed in the original request for proposal (RFP) meant to be procured in under the process that began some eight years ago, highly placed sources told this writer.

The decision to buy nearly three and a half squadrons (between 60-63 aircraft) of Rafale jets for the Indian Air Force (IAF) was taken at the highest political level hours before Prime Minister Narendra Modi embarked on his three-nation tour on Thursday, the sources added. Given the huge financial and operational implication, the government thought it prudent to take a strategic decision rather than leave it to a bureaucratic process.

The French are likely to be told of this decision by the Prime Minister himself when he meets President Francois Hollande in Paris on Friday.

Under the new proposal, the entire process for procuring 126 combat jets would be scrapped, sources revealed. A new G-to-G (government-to-government) contract is likely to be negotiated between New Delhi and Paris to buy around 60 Rafale jets in flyaway condition from France.



According to top sources, this approach is being adopted for two primary reasons:

1 > it is imperative that the IAF gets these jets as soon as possible in view of the fast depleting numbers and

2 > Because the impasse in the price negotiations. The entire procurement procedure for the combat jets has turned into a chaotic process thanks to the indecision on part of the political leadership in the previous regime and some loopholes in the negotiations itself making it impossible for the government to arrive at a satisfactory solution.


India is likely to ask for lowering of the price per aircraft too when the G-to-G negotiations get underway. By ordering 60 aircraft to be manufactured in France itself, the government is also hoping to skirt the tricky issue of guaranteeing quality of work under Hindustan Aeronautics Ltd (HAL), designated as the Lead Production Agency in India.

The government's drastic decision to scarp the torturous procurement process is aimed at augmenting the IAF's falling numbers as well as save about RS 60,000 crore in precious foreign exchange. The calculation is that the 60-odd aircraft would cost about RS 40-45000 crore to be paid out over next four-five years instead of over Rs one Lakh crore necessary to procure the original number of 126 combat jets.

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With the next month start of construction of the first of four corvettes Gowind kind commissioned in 2500 by Egypt and selling the country to the multi-mission frigate (FREMM) Normandy, DCNS Lorient site will see its industrial ramp up. Or rather return to a situation similar to that which was to be held prior to the budget cuts in the Department of Defense lead to a spreading of the FREMM program.

The assignment to the Egyptian Navy Normandy, second French frigate of this type will lead to the construction of an additional building allowing the Navy to have six FREMM 2019, as provided by the military planning law.

According to the new schedule set, Provence, which began testing in October, is expected to be delivered to the French fleet this summer, while the next FREMM, the Languedoc, set afloat in July, must realize his first sea trip by the end of the year. In September, DCNS will proceed to the last wave of the fourth French FREMM, Auvergne, being assembled in the form of construction of Lorient. Where the mounting of the next frigate future Britany, has also started. Egyptian corvette, with delivery scheduled from summer 2017, must then be inserted between the FREMM, knowing that the cutting of the first sheet of the sixth French frigate has not yet occurred.

For the record, the other three Gowind 2500 must be made of technology transfer by Egyptian sites. The contract does include an option for two additional units which, if strengthened, could see the fifth and sixth corvettes built in Lorient.

DCNS, who still hopes to sell FREMM export, especially in Saudi Arabia, must also complete two derived units dedicated to air defense, FREMM DA, whose delivery is scheduled for 2021/2022. The French contract, which currently carries a total of 11 buildings will be reassessed end of 2016. It is possible that the construction of a three FREMM be abandoned in favor of the new program of intermediate size frigates (FTI). Units called to replace La Fayette in 2025 and two in five copies will be made based on the final number of FREMM, knowing that the White Paper on Defence fixed to 15 the number of senior Navy frigates national must have in 2025: two frigates of the Horizon type two FREMM DA, six to nine FREMM and two to five FTI.

It will be recalled that the DCNS Lorient site, which employs 2,200 people and sustains 800 subcontractors had seen her in the 2000s sized industrial tool to deliver to a FREMM every 7 months (from the time the program covered 17 frigates of this type). A widely slower pace, causing production capacity, even with the acceleration of the rate related to Egyptian contracts, are still far from saturated.

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FORBIN said:

No news on French sites/blog specialised or not, strange , 60 first time i see it.
Maybe again a surprise for this laborious deal !

If only 60 buy, licensed production would be interesting for max 40 ?
60 equip 3 sqns of 18 standard equipment for a IAF sqn and rest 6.

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After Egypt, another agreement surprise? Reportedly, negotiations between the French and Indian Governments were underway Friday morning April 10, for the purchase of three squadrons of Rafale, 63 planes, for a total of 7.2 billion euros. "The discussions lasted all night, they are continuing this morning ensured a close case without prejudging their findings. The idea is to be able to announce this contract during the visit to Paris of Narendra Modi, the Indian Prime Minister, Friday or Saturday.

"The issue of Rafale is still under discussion and we should be able to move forward on a mutually acceptable basis," stated Mr. Modi Le Figaro, owned by Dassault, published Thursday, April 9, on the eve of his arrival in Paris.

If the number of fighters finally ordered was not yet fully arrested Friday morning, the principle of the assembly would be granted. Specifically, the Indian government would play an option contained in the "Contract of the Century" 126 devices, Dassault granted in 2012. It provides for the purchase "off the shelf" of 63 additional Rafale, that is -dire made in France and not in India as provided in the main contract. New Delhi, this would quickly dispose of devices without waiting for the end of negotiations on the initial contract and, above all, without having to launch a new tender.
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The price issue

The French had been successful on this point, but a last sticking point concerned the overall price. The unit cost of a Rafale produced in India has indeed proved superior to that produced in France, due to the need to establish a comprehensive network of contractors, non-existent there, and train teams. The Rafale 'make in India ", 108 copies are provided on the 126 contract, would have an additional cost of € 8 billion, bringing the total contract of 12 to 20 billion euros.

"This is the first time that India had decided to spend a tender of this magnitude precisely to protect against political interference," said Rakesh Sood, former Ambassador of India in France. But the stumbling blocks, the Indian press has echoed, multiplied. "And the pressure that rested on the shoulders of the group members made by the Indian government to conclude the contract of" Century " could slow down procedures, "says Rakesh Sood.

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Production until the end of 2016

The agreement, if it materializes, would remove some of the uncertainty related to the financing of the 2014-2019 military planning law (LPM). For several years, the French government is committed to ensure the production rate of the Rafale, with a minimum of eleven aircraft per year, not to undermine the chain of Dassault and its 500 subcontractors. However, the new LPM has awarded 26 Rafales for the French army, which ensures production only until the end of 2016. The state has provided for that date to stop his aircraft Dassault purchases to dedicate this budget other priority materials.


During the LPM, Dassault Rafale produce 66 at the rate of eleven aircraft per year. Excluding production for France, the 40 others must be purchased by foreign countries, otherwise Paris must acquire. With the 24 ordered by Egypt and those proposed by India, production for overseas would be assured.

translated from French

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FORBIN said:

No news on French sites/blog specialised or not, strange , 60 first time i see it.
Maybe again a surprise for this laborious deal !

If only 60 buy, licensed production would be interesting for max 40 ?
60 equip 3 sqns of 18 standard equipment for a IAF sqn and rest 6.

Click to expand...

Jeff Head said:

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View attachment 12802
PLA Navy commander Admiral Wu shengli with French Navy Chief of staff on Liaoning
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