India, Dassault agree to set aside divergences, move ahead in other areas

NEW DELHI: India and French firm Dassault Aviation today decided to keep aside their sharp differences over contractual obligations and move ahead on the other aspects of the deal to procure 126 multirole combat aircraft for the IAF.

During the contract negotiation committee meeting today, the two sides agreed to keep their discussions pending on the issue of having separate contracts and the role of HAL in the deal and move ahead on other things such as pricing and support services, sources told PTI here today.

Serious differences have cropped up in the contract negotiations between the Defence Ministry and the French firm, threatening to delay the country's single largest dose military acquisition.

The French firm has already agreed with the Defence Ministry's demand for having one contract with the four major firms involved in the deal, including MBDA, for the weapons package for the aircraft instead of four separate contracts, they said.

The firm is understood to have agreed to the Defence Ministry's demand on the issue after the involvement of French government.