Sunday, August 17, 2014

Rafale fighter jet deal contract with France almost ready: Defence ministry

Mumbai: The much-awaited multi-billion Rafale combat aircraft deal with France has moved a step further with the defence ministry finalizing a 'draft contract', according to top defence ministry officials.

Rafale was declared the lowest bidder in Janaury 2012 but the deal has not been inked so far on account of escalation in the cost. The Cost Negotiation Committee, which was set up in February 2012 to work out the modalities for the deal has not reached a conclusion after 30 months of negotiations.

The government raised its concerns over this last month, during the visit of French foreign minister Laurent Fabius to New Delhi.

"Yes, we are in the process of finalizing the draft contract for the deal. And we also expect the Cost Negotiation Committee to submit its report soon," said a senior defence ministry official, who was privy to the developments.

But the official refused to give a time frame for inking the deal. "It is very difficult to predict any date for signing the contract. But, it should happen in the next few months," the officer said, requesting anonymity.
18/08/14 Pradip R Sagar/Daily News & Analysis
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