The mother of all arms deal finally inked
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motif

01/07/2016, 03:10:17

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A bit of recaps because the saga has been dragging on for sometimes:

Jan 2012 - Rafale won the bid for India's $12 billion program to purchase 126 medium multi-role combat aircraft. 18 in fly away condition, 108 to be assembled by HAL with French help. Unit cost: $95 million

Apr 2015 - Price went up to $20 billion as France ultimately refused to budge, given Dassault's concerns about HAL's ability to construct the Rafale fighters up to spec and liability issues. Unit cost: $159 million

Aug 2015 - India cancels the deal and opt for 36 rafale in fly away condition hoping for $5 billion. Unit cost: $139 million

Jan 2016 - Final deal inked at 36 Rafale in fly away condition for $9 billion. Unit cost: $250 million.

It seem to me despite the so-called cancellation of the mother of arms deal, France emerged as the ultimate winner after all.

India, France smooth out Rafale deal

Rahul Bedi, New Delhi - IHS Jane's Defence Weekly 04 January 2016

India has completed all negotiations and formalities to procure 36 Dassault Rafale fighters in flyaway condition and delivered all documentation related to the purchase to Paris on New Year's Eve, official sources have said.

The Inter Governmental Agreement (IGA), under which the twin-engine fighters will be acquired, is likely to be signed in New Delhi just ahead of or during French president François Hollande's trip to the city, which begins on 25 January, the sources have indicated. Hollande will be chief guest at India's annual showcase Republic Day military parade in Delhi on 26 January.

Industry sources said the deal for the 36 Rafales is expected to cost around USD9 billion.

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