Rafale deal on track as purchase gets govt nod

The Defence Ministry has given the green signal to officials to complete the price negotiations for purchase of 36 Rafale fighter jets from France so commercial negotiations can be concluded at the earliest.

This is a clear signal that the multi-billion-dollar Rafale deal is on the track.“The negotiation committee apprised the Defence Acquisition Council (DAC), headed by Defence Minister Manohar Parrikar, of the progress (on Rafale negotiations). The DAC told the panel to go ahead,” said a Defence Ministry official on Tuesday after the meeting.
The negotiation team is headed by Air Marshal S B P Sinha.

The DAC also gave the green signal for the purchase of 48 Mi-17V5 helicopters from Russia for Rs 6,966 crore and seven squadrons of indigenous Aakash-II air defence missiles, to be made in India for Rs 4,790 crore.

The DAC approved overall military purchase worth more than Rs 13,000 crore.
The panel, however, spent most of its time on the Rafale deal, announced by Prime Minister Narendra Modi on his April visit to Paris.

Other important DAC decisions were purchase of 8 Chetak helicopters at a price of Rs 322 crore and nine tubs for Rs 300 crore for the Navy. Also the IAF will get new ATC radars and the Army short-span bridge and tank trawls.

The government's assurance can negate reports of the multi-billion-dollar deal running into rough weather because of the Indian negotiators' tough position.

The two sides earlier decided to complete the price negotiations by July 31. Speculations of trouble began when that didn't happen.