The Defence Procurement Board approved the €30 billion project, which will soon be presented to the Defence Acquisition Council for final approval. While negotiations are ongoing, the deal could be finalised by year-end.
The defence ministry has taken the first major step towards the acquisition of 114 Rafale fighter jets for the Indian Air Force (IAF), one of the biggest “acquisition projects” since independence.
The Defence Procurement Board (DPB) headed by the defence secretary, Rajesh Singh, and including the three vice-chiefs of the Army, Navy, and Air Force, cleared this 30 billion Euro project last week. .
With the DPB clearance done, the 114 Rafale deal is likely to be placed before the crucial Defence Acquisition Council meeting, likely next month. The DAC is chaired by Rakshya Mantri Rajnath Singh and includes the minister of state in the defence ministry, chief of defence staff, the three service chiefs, the defence secretary, the chairman of the Defence Research and Development Organisation, and others.
The structure of the deal is still being worked out, keeping in mind India’s atmanirbharata or self-reliance policy. The idea is to ensure that the programme is as indigenised as possible. Ideally, indigenous content ought to be about 40-50 percent, which means that Dassault, which makes the Rafale, will have to set up a plant here and work with Indian vendors towards the production of the plane. The overwhelming number of Rafales will be made in India and will have components made by Indian firms. The negotiations, regarding the price and the indigenous content are still going on.
If the discussions between Dassault and the defence ministry go according to plan, the deal can be signed by the end of this year, but there is a long way to go, keeping in mind the financial issues involved in the project.
India already purchased 36 Rafales from Dassault Systèmes, a French firm. The Navy has also signed a deal with Dassault for 26 Rafale Marine fighters for its aircraft carriers, but these 114 Rafales, unlike the 36, will be manufactured largely in India. Of course, hard-nosed negotiations regarding the cost will be necessary as well as political discussions at the highest level.
