The deal to buy 126 Rafale fighter jets from France appears to have been pulled back from the brink of collapse.
Defence Minister Manohar Parrikar met yesterday with his French counterpart, Jean-Yves Le Drain; negotiations have spanned three years and are now entangled in new questions over cost before a visit to Paris by Prime Minister Narendra Modi in April.
"The two delegations met today for 45 minutes. The meeting went well," said Defence Minister spokesman Sitanshu Kar yesterday, without giving further details.
French company Dassault Aviation won the right in January 2012 to enter exclusive negotiations with India to supply 126 Rafale fighters, with experts saying a final deal could be worth $15 billion.
With depleted and aged fleets, the Air Force is desperately looking for muscle.
The other contentious feature is the cost. Dassault estimates that the jets can be produced much faster than what HAL is willing to commit to. The state-run HAL, however, contends that Indian labour isn't as well-trained as foreign counterparts, and that fewer processes here are automated, adding to the expenses.
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