The Defence Ministry on Friday flashed the provisions of the MMRCA tender to reject the contention of French aviation giant Dassault to have a separate contract with Hindustan Aeronautics limited (HAl) to manufacture 108 Rafale fighter jets in India.
Dassault is the manufacturer of Rafale and is now engaged in contract negotiations with the defence ministry for the proposed 15 billion dollar deal for 126 Rafale fighter jets. While 18 jets will be bought off the shelf from the company if the deal goes through and HAl will manufacture the remaining planes.
The French company reportedly said it will deliver manufacturing kits and equipment to HAl and Dassault will then have no role in integration. The vendor now wants to have a separate contract with HAl for manufacturing planes in India but the defence ministry made it clear to the French company that it will be responsible for sale and delivery of 126 jets as per the RFP and there is no possibility of signing a stand alone pact in this regard.
Elaborating upon the Government’s stand, officials said the RFP clearly stipulates that HAl is the main integrator and there is no provision for a sub contract in the tender specifications. The French manufacturer and the defence ministry officials held a meeting here on Friday to sort these issues, sources added.
Incidentally, Defence Minister AK Antony had reiterated this stand two months back and categorically stated that HAl is the lead integrator and will remain so as the RFP. Secretary (Defence Production) RK Mathur had also stated this stand some time back. Recently, Dassault Aviation CEO Eric Trappier had stated that HAl would be its main partner in the contract and there was no confusion on the issue.
Rafale emerged as the lowest bidder in 2012 for the “mother of all deals” and contract negotiations are now on between the defence ministry and Dassault. Officials said the negotiations for “a contract of such magnitude are protracted and are on track.” If everything goes well, India and France are likely to ink the deal by middle of this year, they added.