French minister in India to salvage Rafale jet deal

French Defense Minister Jean-Yves Le Drian is set to hold negotiations with his Indian counterpart in a bid to salvage a deal on the sale of 126 Rafale fighter jets to New Delhi.

Le Drian will meet Manohar Parrikar on Tuesday during a brief stay in the capital New Delhi, aimed at salvaging the troubled deal, which faces new discussions over production and cost of the jets.

Negotiations have been going on since January 2012, when French aerospace firm Dassault Aviation won the right to enter exclusive talks with India to supply the Rafale fighters.

Under the deal, the first 18 Rafale combat jets will be built by aircraft manufacturer Dassault Aviation in France and the remaining 108 will be assembled in India by state-run Hindustan Aeronautics.

India has insisted that the French aerospace firm take full responsibility for the aircraft produced at Hindustan Aeronautics Ltd. Plant located in the southern city of Bangalore.

However, France has rejected the request, saying it would help Hindustan Aeronautics to follow delivery schedules, but it could not guarantee production of the aircraft made at the Indian facility, of which it had no administrative or expert control.

Paris is also facing problems over the cost of the jets, as an Indian committee investigating the purchase has reportedly found that it would not be the cheapest option.

The Indian defense minister said last week that the government would make a decision on the fate of the Rafale deal only after the release of the report by the ministry's contract negotiations committee (CNC), which is expected early next month.

Paris is seeking to reach a sales agreement ahead of a visit by Indian Prime Minister Narendra Modi to the French capital in April. Experts say the deal could be worth 748 billion Indian rupees (USD 12 billion).

The French Dassault jets are a twin-engine delta-wing fighter aircraft with semi-stealth capabilities intended to perform air supremacy, aerial monitoring and nuclear strike missions.

CAH/GHN/HMV

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