On Monday, the Cabinet Committee on Security (CCS) will close negotiations between the Indian Defence Ministry and French manufacturer Dassault Aviation, over a year after Prime Minister Narendra Modi had approved an agreement to buy 36 Rafale fighter aircraft from the manufacturer.
The negotiated price for the fighter aircraft is approximately 7.8 billion euros, with deliveries beginning in 2019 and an annual inflation capped at 3.5%.
The Defence Ministry has reportedly sent the final negotiations to the CCS after making a few changes. The manufacturer will be outsourcing 50% of the total amount of the deal from India.
The cost of 36 fighters will be around Rs 7,000-8,000 crore lower than what was being offered during the UPA regime in the now-cancelled contract for the multi-role medium range combat aircraft (MMRCA). Rafale had been shortlisted as the lowest bidder in the MMRCA tender.Senior Defence Ministry Official
The high-quality jets will be on the frontline for the Indian Air Force along with Russian Su-30 MKI forming the skeletal support.
Since the PM had announced the deal in 2015, persistent negotiations between the manufacturer and Defence Minister Manohar Parrikar have been carried out.
Source: Hindustan Times
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