Modi goes Shopping in Paris, Picks up 36 Rafale Fighters for $200mn(?) each for Delivery in 2017(?)

· Its Goodbye to Protracted 14 Years Tender Negotiations with ToT and $87mn Price for Fighter

· Anil Ambani and Rafale Fighter Jt Venture Soon to “Make in India”

Indian Prime Minister Narendra Modi has asked France to supply India with 36 Rafale warplanes in ready to fly condition.

Modi said on 10 April during a visit to Paris that he wants the 36 planes as soon as possible and that details of the transaction “still have to be negotiated”. French President Francois Hollande, speaking alongside Modi, said Defense Minister Jean-Yves Le Drian will travel shortly to New Delhi to hammer out an agreement.

The purchase mode is on G to G bases negotiations without Tech Transfer or open tender. For Dassault, it’s the second export order for the fighter plane after Egypt ordered 24 in February. It will revive the ailing major who currently produces just one aircraft a month for the French Air Force.

India, the world’s largest importer of major weapons, has been in discussions to buy as many as 126 Rafales, which were priced at $11 billion in a 2007 tender, with the bulk of the planes to be assembled in India by state-owned Hindustan Aeronautics Ltd. (HAL is now out in the cold in the current G to G deal). An agreement on that order was delayed by disagreements over Dassault guarantees for the planes built in India. Dassault not ready to certify the quality of HAL built Rafale.

In the order Modi proposed Friday, all the planes would be built in France, French officials said.

Anil Ambani was in Paris during the Modi visit holding meetings with the top guns in Dassault to ink joint ventures deals.

Threats

India’s armed forces have more than 1,200 planes and helicopters of Indian, Soviet, U.S., French, British and Swiss origin. India plans to spend $150 billion through 2027 to update its military against potential threats from China and Pakistan. It’s increasingly seeking more domestic production as part of that.

Modi has cleared about $40 billion of arms procurement proposals since taking office last May, roughly four times India’s spending on weapons in the previous fiscal year. The blitz spans heavy guns to submarines as he seeks to counter China’s rising military heft and take a firmer stance on border disputes with Pakistan.

India chose Dassault’s twin-engine, delta-wing Rafale three years ago over Boeing Co.’s F/A-18 Super Hornet, Lockheed Martin Corp.’s F-16 Fighting Falcon, United Aircraft Corp.’s MiG-35, Saab AB’s Gripen and the Eurofighter Typhoon.

Experts suggest that to make up fighter squadrons quickly, then there is no better way than putting an indent with the Russians for more Su-30MKIs. The line of thinking is favoured by Defence Ministry, their experience with Dassault on Mirage upgradation has not been happy. Russia is best, “old is gold”, they say

Su-30 with full ordnance load comes in at less than half the price of Rafale which is a big plus.

The Indian Tejas Mk2 and the advanced medium combat aircraft projects will also be deprived of much needed funding if Rafale takes over.