India’s purchase of 126 Rafale fighter jets from France’s Dassault Aviation SA (AM) is being delayed, even as the South Asian nation struggles for enough squadrons to counter potential threats from China and Pakistan.
The sticking points are the 2007 tender’s $11 billion price tag and India’s requirement for quality guarantees from Dassault for planes made under license locally by Hindustan Aeronautics Ltd., three officials with knowledge of the matter said. They asked not to be identified as the talks are private. India had aimed to sign the contract by the end of last year.
The air force estimates at least 45 squadrons are needed to repel a joint attack from Pakistan and China, compared with a current active strength of 25, which includes 14 squadrons whose MiG-21 and MiG-27 jets are due to be taken out of service starting this year. That shows the deal’s importance for Prime Minister Narendra Modi’s agenda of military modernization. For Dassault, a sale would be its first export of the combat plane.
22/01/15 N.C. Bipindra/Bloomberg Business Week
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The sticking points are the 2007 tender’s $11 billion price tag and India’s requirement for quality guarantees from Dassault for planes made under license locally by Hindustan Aeronautics Ltd., three officials with knowledge of the matter said. They asked not to be identified as the talks are private. India had aimed to sign the contract by the end of last year.
The air force estimates at least 45 squadrons are needed to repel a joint attack from Pakistan and China, compared with a current active strength of 25, which includes 14 squadrons whose MiG-21 and MiG-27 jets are due to be taken out of service starting this year. That shows the deal’s importance for Prime Minister Narendra Modi’s agenda of military modernization. For Dassault, a sale would be its first export of the combat plane.
22/01/15 N.C. Bipindra/Bloomberg Business Week
