Jun 18, 2014

India's Rafale Negotiations Stall Over Delivery Commitments

India’s Medium Multi-role Combat Aircraft (MMRCA) program has run into turbulence due to a disagreement over delivery commitments.
The Indian Air Force has told the new government that Dassault and Hindustan Aeronautics Ltd. (HAL), must put their delivery guarantees in writing before the MoD signs the contract.
HAL is unwilling to give any written guarantee on the delivery schedule for the Indian-made Rafales, and instead wants Dassault to guarantee deliveries of the Indian-made aircraft, a condition the French have already rejected.
The program’s request for proposal stipulates that the first 18 aircraft will be supplied by Dassault in fly condition and the remaining 108 aircraft will be manufactured, by HAL — through technology transfer. The delivery of the aircraft should begin three years after the contract is signed.
The MMRCA contract negotiations have also been delayed because HAL has not finalized the cost of the India-made Rafale.
No date is available for when the final cost of the Indian-made Rafale will be provided to the MoD.
Signing the deal within six months is unlikely.
The delays in finalizing the deal have not only pushed back delivery of the fighter, but also led to cost escalations of more than 30 percent.
Rafale beat the Eurofighter Typhoon only on the basis of cost.

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