Rafale deal: India, France set up teams to work out details

NEW DELHI: Seeking to fast-track the contract for 36 new Rafale fighters, India and France have decided to form special teams that will work on a time-bound manner to conclude negotiations. The decision to firm up an inter-governmental agreement – expected to cost $ 8 billion – at the earliest was taken during a meeting between visiting French defence minister Jean-Yves Le Drian and his counterpart Manohar Parrikar on Wednesday, as reported by ET.

“The two defence ministers discussed modalities to reach an early conclusion of an Inter-Governmental Agreement on the subject. The two sides decided to set up teams to work out details in a time-bound manner,” the defence ministry spokesperson said. The ministry added that the agenda of the meeting was to decide on a way forward to ‘acquisition of 36 Rafale jets in fly-away condition, through an inter-governmental agreement’.

The Rafale deal was taken forward last month during Prime Minister Narendra Modi’s Paris visit when the French side offered a 25% price reduction to India against an earlier offer. The deal followed years-long negotiations on buying the jets.

Talks began in 2012 about the possible purchase of 126 of the planes as part of a $12-billion deal. But they became bogged down over cost and the government’s insistence that 108 of the planes be manufactured in India.