India has said that it hopes to conclude the Rafale fighter jet deal for around $9 billion or 8.08 billion euros. The amount is significantly below what was originally sought by the French plane maker Dassault.
Highlights
- India, France set to close multi-billion euro deal for 36 Rafale jets
- India hopes to conclude the deal for around 8.08 billion euros
- The amount is significantly below what was sought by Dassault Aviation
Dassault Aviation is ready to sign a contract with India at any moment for 36 Rafale jets, but the ball is in India's court, chief executive Eric Trappier has said in an interview to a French newspaper.
India said in April that protracted talks to buy the Rafale fighter jets are nearing the finish line.
"We are ready to conclude (the sale) at any moment, the ball is in the Indian government's camp," Mr Trappier was quoted as saying.
Asked about reports that India has said a bank guarantee is required for the deal, he said that is not the case since the deal is already guaranteed by the French state.
India has said that it hopes to conclude the Rafale deal for around $9 billion or 8.08 billion euros. The amount is significantly below what was originally sought by the French plane maker.
Both sides had hoped to wrap up the strategic order during President Francois Hollande's visit for the Republic Day celebration in January, but hard bargaining on price stalled a final result.
President Hollande and Prime Minister Narendra Modi intervened in the troubled Rafale procurement last year, ordering government-to-government talks after commercial negotiations with Dassault had collapsed.
The leaders agreed to scale back an original plan to buy 126 Rafale planes to just 36 in fly-away condition to meet the Indian Air Force's urgent needs as it faces an assertive China and long-time foe Pakistan.
The revised Rafale deal does not call for any production in India since the jets would be purchased off-the-shelf.
But sources have said a major sticking point has been New Delhi's standard requirement that arms makers invest a percentage of the value of any deal above $50 million in India.
Such so-called offset policies are not unusual, where Western defence firms have invested in local technology and jobs in return for sales.
The Air Force has also reportedly asked for technical modifications so the latest weapons could be fitted to the jets. Initial technical specifications, which were part of the commercial negotiations, were outlined a decade ago when India began the process of seeking new fighters.