French Defence Minister Jean-Yves Le Drian said Friday talks over a $12-billion deal to sell Rafale jets to India were progressing well and that a brand new bilateral pact would underpin the deal.
India initially set a target of the top of last year to conclude the acquisition of the 126 aircraft, one of many biggest ever defence deals, but deadlines have repeatedly slipped.
With India set to visit the polls for national elections within the first half next year, experts believe that the possibilities of a speedy conclusion are dwindling.
“I is absolutely not announcing the date for signing the contract but i need you to understand that the negotiations are going well and i’ve full confidence,” Le Drian told reporters during a visit to New Delhi.
He added that a “framework Indo-French inter-governmental agreement for this contract” will be signed which might “provide your complete necessary guarantees of the French state”.
Dassault Aviation beat off stiff competition from six rivals from Russia, america and Europe last year when India selected its state-of-the-art Rafale jet.
The huge, complicated contract would see the manufacture of the 1st 18 planes in France with the rest to be produced under license by Hindustan Aeronautics Limited (HAL), a state-run Indian aerospace behemoth.
Dassault is reported to have reservations in regards to the ability of HAL to supply the planes and its own financial liabilities within the event that the jets aren’t made as much as standard.
The group said in February that it hoped to sign its first export contract this year for the aircraft, which was in action in Afghanistan, Libya and Mali most recently.
Le Drian said he had discussed the Rafale handle his Indian counterpart A. K. Antony in a gathering earlier on Friday.
“I am under no circumstances interested in the delays (in signing the Rafale deal). i think the pace of progress is perfectly normal for a project of this magnitude,” he said.
Rafale’s main rival, the Eurofighter made by European group EADS, has remained in India and continues to be hoping to win the deal in case Dassault is unable to conclude the negotiations successfully.
Dassault and the French government are in turn hoping that India’s choice will send a favorable signal to other potential buyers of the Rafale, including Brazil, that is available in the market for 36 planes, Canada, Malaysia and the United Arab Emirates.
India, that’s surrounded by hostile neighbors, is ranked because the world’s biggest importer of defence equipment, buying as much as 80 percent of its weapons from overseas.
The French defence minister also sought to reassure New Delhi over the progress at the building of six Scorpene submarines which have been dogged by huge delays and price overruns.
The Scorpenes were under construction by French company DCNS at a shipyard in Mumbai since 2005 and the 1st delivery is just expected next year.
There is “complete transfer of technology” and co-operation with the Indian industry at the Scorpene deal, the minister said.
He also said the updating of Mirage jets that India bought from France in 1980 was proceeding well.
The Mirage fleet is being modernized by French experts in central Madhya Pradesh state.
“At the top of this upgrade, the aircraft will match probably the most modern standards and stay in service for lots more years,” Le Drian said.
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