24 September 2016

News Story: India Finally Confirms Rafale Deal

by Neelam Mathews and Chris Pocock

More than four years after the Dassault Rafale was chosen for its Medium Multi-Role Combat Aircraft (MMRCA) requirement, India has signed an inter-governmental agreement with France worth €7.87 billion for 36 aircraft. The deal was inked in Delhi today by the defense ministers of both countries. It specifies details of the contract, including timelines. However, the support, logistics and 50 percent offsets package will be signed in a few months, a senior MoD official toldAIN.

While the agreement has an option clause for 18 more Rafales, it is unclear whether more of the French jets will eventually be manufactured or assembled in the country, under the terms of the “Make In India” policy. The original MMRCA requirement envisioned a total of 126 aircraft, of which only the first 18 would be produced in France. But negotiations stalled on the terms and conditions for licensed production.

Read the full story at AINonline