India Begins Talks with "Dassault Rafale" of the Contract

He became known a number of details related to the choice of India's Ministry of Defense of "Dassault Aviación" with a fighter "Rafale" preferred bidder on the program MMRCA. Representatives of "Eurofighter" and "Dassault Aviation" January 31 were invited to the Ministry of Defence of India, where they announced the completion of the procedure for determining the proposal with the so-called "Lowest cost".

According to unofficial information, the proposed price fighter "Rafale" (based on the same machine) turned out to be 4-5 million dollars lower (15-17%) than its competitor. In addition, the final choice in favor of the French aircraft, of course, influenced by the fact that the Indian Air Force has long been exploited by fighters "Mirage".

According to Indian Defense Minister AK Anthony, a formal contract with the successful bidder will be signed on or after 1 April 2012, since the definition of proposals from the so-called "Lowest cost" is only the first of several required procedures before signing the final contract.


Prior to signing the contract the Ministry of Defence will hold talks with "Dassault" to determine the final value of contract and the amount of transferred technologies. Negotiations will begin in the coming weeks. The draft contract will be considered by the Ministry of Finance and Safety Committee of the Government of India, headed by the prime minister. Knowing the specifics of the adoption of Indian leadership decisions on large military contracts, there is a possibility the postponement of a final decision.

According to some experts, the increased cost of the program and financial problems faced by India, including the depreciation of the rupee may also adversely affect the timing of the contract. According to the source agency "Reuters" in the Ministry of Defence of India, the total cost of delivery of 126 fighters, including training and maintenance, can reach 15 billion dollars. According to previous estimates, the cost of the program was estimated to be worth around 11 billion dollars.


In accordance with the original requirements of the tender MMRCA, the winner must put 18 fighters in finished form. Another 108 vehicles will be manufactured under license in the facilities of "Hindustan Aeronautics Limited" (HAL) after transfer. The winner of the tender should be reinvested in Indian industry 50% of contract value.

The company  "Dassault Aviation"  in its press release expressed gratitude to the leadership of India and the Indian people for your selection. French President Nicolas Sarkozy also welcomed India's decision and pledged to ensure the transfer of a significant amount of technology that significantly enhance the capabilities of Indian defense industry.


Upon successful completion of negotiations, the contract for the MMRCA will be the most important event for the company  "Dassault Aviation" , which for years tried unsuccessfully to find a foreign buyer for the fighter" Rafale ", which is considered one of the most effective, but also among the most expensive in the world.


It should be recalled that in December 2011, French Defence Minister Gerard Longuet, warned that "Dassault" can stop the production of "Rafale" in 2021, if not get export orders. It is noteworthy that the share price, "Dassault Aviación" after the announcement of the Defence of India soared by 22%, breaking a four-year record.


The choice of the Indian Air Force in favor of the French aircraft also increases the chances of  "Dassault Aviation"  to sell fighter "Rafale" Brazilian Air Force and the UAE. This is the third major success in France in the Indian arms market over the past few months. Last year, India's Defense Ministry has signed a contract to modernize the 51 airplane "Mirage 2000". In January 2012 the Government of India has decided to purchase 500 fighters for these missiles MICA class "air-to-air" of the company MBDA, which is estimated at 950 million euros (66 billion rupees).