After inking the 7.87 billion Euros ( `59,000 cr) Rafale deal last fortnight for 36 fighter planes, India and France are now holding parleys for forging joint ventures to supply material and technology from India for manufacturing the Rafales. These collaborations will be worth over 3 billion Euros and will form part of ‘Make in India’ policy as per the contract. The first lot of planes may start coming to India before 36 months.
Defence Minister Manohar Parrikar said on Sunday in Pune that India may start getting Rafales from France earlier than the agreed-upon 36 months. “As per terms of the deal it is 36 months (during which the delivery has to start), but it may come slightly earlier. We have requested them to (deliver it) as fast as possible,” he said. The delivery schedule stretches from 36-67 months from the date of signing the contract. It was signed on September 23 in New Delhi.
The 36 planes to be manufactured as per Indian specifications will mandatorily have components from Indian industry be it private or public and the two countries are now engaged in talks to identify the companies. Both the sides will be free to choose their partners for the joint venture, sources said here on Sunday.
Incidentally, the `59,000 crore Government to Government deal has a 50 percent off set clause wherein Dassault, the French aerospace giant manufacturing Rafales, will have to plough back half of the contracted money into the Indian Defence industry. Moreover, 74 per cent of the off sets will have to be exported from India in an effort to boost the capabilities of medium and small scale units involved in manufacturing highly specialised equipment.
The exports from India will last for more than seven to eight years thereby providing the much needed fillip to the local industry which needs hi-technology used in manufacturing complex weapons systems like fighter jets. France has also offered to collaborate with India in developing the Kaveri jet engine as part of off set. Indian scientists have to achieve the breakthrough in this project sanctioned more than 20 years back. Kaveri engine was to be fitted on to the indigenously designed and built Tejas light combat aircraft.
The ‘vanila price’ (just of the aircraft alone) will cost about 91 million Euros each for a single seater and about 94 million Euros for a two seater trainer aircraft. The cost of per aircraft fitted with all weapons will cost about `1,600 crore.
Parrikar also said a 12-member committee to suggest structural changes in the military on cutting down flab and reducing revenue (maintenance) expenditure will soon submit its report.
The committee is headed by lt Gen (retired) DB Shekatkar.