Defence minister Manohar Parrikar said on Wednesday that India would decide on the fate of a multi-billion-dollar deal to buy Rafale fighter jets from Dassault Aviation of France by early March, after the contract negotiation committee (CNC) submits its report. Price negotiations have dragged on since 2012, when Rafale won a tender to supply 126 fighter planes for the Indian Air Force (IAF).
“I would not be able to comment on it till CNC gives me a detailed report,” Parrikar said in reply to a question. “I have told them to submit it by March… last week of February or first week of March.”
The committee is reviewing the long-term costs, called the life-cycle costs, which will be incurred over the life of the plane. The defence minister said he has sought an increase in IAF fleet’s operational performance to make up for the gap. He declined to specify the gap in the fighter jet fleet requirements, calling it a “national security” matter.
When asked if the delay is upsetting foreign vendors, he replied with an anecdote, “If you go to a supermarket with your wife, you want to buy everything. Then you see your budget and EMI and you only buy to the extent that is allowed in your budget. I would like to buy many jets, but I can’t spend that kind of money. There are ships, submarines for which commitments have already been made and which will come up for allocation in next year’s budget and we have to keep them,” he said.
On the upcoming defence budget, he said he only hoped that the needs of defence forces are attended to.
Negotiations are also underway for procuring M777 155mm howitzers, Apache
attack helicopters,Chinook heavy-lift helicopters, VVIP helicopters, mid-air refuellers and additional P8i maritime reconnaissance aircraft, among others.
Prime Minister Narendra Modi opened the Aero India 2015 at the Air Force Station at Yelahanka. Defence ministers or officials of equivalent ranks of many nations, including the US, Russia, Israel and Germany, attended the inaugural event. Minister of state for defence Rao Inderjit Singh was also present.
Chief executives from global aerospace majors will hold business meetings with their Indian counterparts at the event.
