The much-awaited proposed Rafale fighter jet deal is likely to come up in the Defence Acquisition Council (DAC) meeting chaired by Defence Minister Manohar Parrikar next week after the negotiating team of the Defence Ministry submitted its final report recently. The team was holding meetings with its French counterpart to hammer out the final price of the 36 jet deal. The price tag is likely to be Rs 60, 000 crore.
The DAC, the apex body for clearing acquisition of weapon systems for the armed forces, had last month reviewed the multi-billion Euro Rafale deal and directed the Indian negotiating team to submit its report “expeditiously.” The next meeting of the DAC is likely to be on August 18
Giving the progress report, Parrikar in a written reply in the lok Sabha said on Friday “the negotiating team has submitted its report which is under examination.”
During his visit to France in April last year, Prime Minister Narendra Modi had announced that India would purchase 36 Rafale jets in a Government-to-Government contract. The commercial negotiations started in January this year between the Indian and French Government officials besides Dassault Aviation, manufacturer of Rafale jets.
The proposed deal comes with the clause of delivering 50 per cent offsets, creating business worth at least 3 billion Euros for smaller Indian companies and generating thousands of jobs in India through offsets. France has also offered to collaborate with India in developing Kaveri jet engine. The Indian scientists are yet to achieve breakthrough in developing the highly complex engine for indigenously developed and manufactured Tejas fighter jet.
Once the DAC and the Defence Ministry clears the deal, the Finance Ministry will scrutinise it before showing it to Cabinet Committee on Security(CCS) headed by Prime Minister Narendra Modi. The final nod for the deal will be given by the CCS.