India issues request to France for 114 Rafale jets under Rs 3.25 lakh crore deal

New Delhi: Kick-starting the formal acquisition process for Rafale fighter jets under a Rs 3.25 lakh crore deal, India has issued a letter of request (LoR) to France which will be followed by price negotiations before a contract is signed later in this financial year.

The deal to acquire 114 Rafale fighter jets to bolster the Indian Air Force is being processed under the government-government route, with sovereign guarantees and a deep technology transfer commitment.

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The LoR was issued last week by the defence ministry, according to people with knowledge of the matter, and detailed negotiations are expected to take place over the next few months before the technical and commercial details are finalised. Once the ministry has received all clearances, including by the Cabinet Committee on Security, it will issue a formal letter of acceptance to France, placing the order.

Under the acquisition plan, 94 Rafale jets will be manufactured in India by French manufacturer Dassault Aviation in partnership with Indian companies. India is looking to set up a full-fledged fighter production line locally, taking the indigenous content on the jets to at least 50%.