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Business News/ Politics / Policy/  No final decision yet on Dassault aircraft deal, says government
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No final decision yet on Dassault aircraft deal, says government

Negotiations are still underway for the procurement of medium multi-role combat aircraft from the French company, says defence minister

The main issues concerning the deal are pricing and Dassault’s reluctance to stand guarantee for the 108 fighters to be built by state-run HAL. Photo: BloombergPremium
The main issues concerning the deal are pricing and Dassault’s reluctance to stand guarantee for the 108 fighters to be built by state-run HAL. Photo: Bloomberg

New Delhi: Negotiations are on for the procurement of medium multi-role combat aircraft from France’s Dassault Aviation SA, but “no final decision" has been taken in this regard, the government informed the Rajya Sabha on Tuesday.

Defence minister Manohar Parrikar also said the review of existing fleet and induction of new aircraft is a continuous process that is carried out keeping in view the operational requirements of the air force.

On whether fifth-generation fighter aircraft (FGFA) are in place for the Indian Air Force to have superior air strike capabilities, he replied in the negative.

French defence minister Jean-Yves Le Drian had last month held talks in the national capital with Parrikar to salvage the multi-billion Rafale contract even as a deadlock continues to hold up the deal.

As the two ministers met, the cost negotiating committee is understood to have submitted its report to the ministry of defence. During the meeting, the French minister took up the issue of the Rafale fighters manufactured by Dassault Aviation.

India had selected Rafale for the deal in 2012, but the final contract is yet to be signed. While 18 jets are to be bought off the shelf, 108 are supposed to be manufactured here by Hindustan Aeronautics Limited (HAL). The main issue concerns the pricing, which is basically the production cost in India, and Dassault’s reluctance to stand guarantee for the 108 fighters to be built by state-run HAL.

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Published: 17 Mar 2015, 04:19 PM IST
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