NEW DELHI, Jan 4:
Procurement process of 126 medium multi- role fighter aircraft for the Indian Air Force appeared to be heading towards ‘turbulence zone’ as the French firm Dassualt Aviation has reportedly gone back from its original quoted price.
Dassault made aircraft Rafale had won the race on the basis of lowest price but the company is now said to be quoting higher cost for per unit aircraft.
At the time of issuance of Request For Proposal, the deal was to the tune of Rs 43,000 crore. During the course of time, the cost escalated to more than Rs 80,000 crore and it is often dubbed as the mother of all defence deals. Sources in the Defence Ministry said apart from the issues relating to difficulties in negotiations between HAL and Dassault on liability for the 108 aircraft that will be built in India, price of per unit plane is the most important factor which is coming in way of finalisation of the contract. “Dassualt made Rafale had won the deal with razor thin margin defeating EADS’s Euro Fighter Typhoon and the slightest of escalation in the price would have pushed it out from the race,” sources said, adding that deal may be legally challenged by the competitors if the originally quoted prices are not adhered.
“We will not accept any deviation from the original RFP as it is sacrosanct to us,” a senior MoD official, closely connected to contract negotiations, said.
He said the new government wants speedy finalisation of the deal, but the ball is in the Dassault’s court. An empowered team from the French Company is slated to visit India shortly to tie the loose ends.
French Defence Minister Jean-Yves Le Drian had visited New Delhi last month. It was his third visit to India. During Mr Drian’s visit, Defence Minister Manohar Parrikar had assured the French side that the new government will fast track the deal, but it would not make any changes in the RFP in the last stage of finalisation of contract. Responsibility for the HAL-built 108 aircraft in terms of liability, damages and attendant clauses on access, inspection and post-manufacture testing was also said to be a sticky issue. Sources said that Dassault has asked the the Cost Negotiation Committee (CNC) that it was awaiting figures from HAL on the financial aspects of the liability it intends to transfer to Dassault.
The French firm has asked HAL to clarify the specifics of any similar liability parameters in comparable deals. Dassault is understood to have even raised the issue of the extent of access to HAL’s facilities.
(UNI)
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