05 February 2014

News Story: India, Dassault Rafale Deal Appears Stalled


By VIVEK RAGHUVANSHI

NEW DELHI — Negotiations over the multibillion dollar deal to sell 126 Dassault Rafale jets to India have stalled, according to Indian Defence Ministry sources, who say the sticking point involves issues governing license-production of the jets at state-owned Hindustan Aeronautics Ltd. (HAL).

A series of meetings held over the past three months have failed to resolve the stalemate, the sources said, meaning it is unlikely the deal will be finalized during the current New Delhi administration.

At the beginning of the year, Rafale-maker Dassault met with the MoD, Indian Air Force and HAL to break the impasse, sources said. A planned visit by HAL Chairman R.K. Tyagi for Jan. 27-31 has been postponed, putting a question mark over the entire program.

A Dassault executive said the company was informed at the last minute about the postponement of the HAL team visit to Paris and gave no details.

However, a senior HAL executive said the visit was postponed due to a sudden company board meeting at home. He said the visit has just been postponed, not canceled.

Read the full story at DefenseNews