India, France sign inter-governmental pact

India and France will sign an “inter-governmental agreement” in recognition of Paris’s commitment to India’s biggest military deal to purchase 126 fighter planes for the Indian Air Force (IAF), before commercial contracts are inked.

French fighter aircraft Rafale manufactured by aviation major Dassault Aviation was shortlisted by India for the deal, whose value may turn out to be between $ 17-20 billion once the contract is concluded.

“There will be a framework Indo-French inter-governmental agreement for the 126 fighter jets contract, which will provide all the necessary guarantees of the French State,” French Defence Minister Jean-Yves Le Drian said here on Friday after meeting his Indian counterpart A K Antony. The minister met the Prime Minister and National Security Adviser as well. 

French officials said signing of medium multi-role combat aircraft (MMRCA) contract was not on the horizon as there were several contentious issues like 50 per cent offset obligations, which have to be negotiated first.

The official announcement on the shortlisting of Rafale was made 16 months ago. Since then, the two sides are locked in price negotiation.

“The French side never put a target date on the negotiation. So, there is no question of a delay. The negotiations for Mirage upgrades and manufacturing of Scorpene submarines in Mumbai took 2-3 years each,” reliable sources said.

India and France are going to have three major bilateral exercises involving the three services. The first one would be “Shakti” in September, 2013 between the two armies. It will be followed by naval exercise “Varuna” off Indian coast in the winters in which a French nuclear-powered aircraft carrier will take on the Indian Navy in a mock war-drill. The IAF’s “Garuda” exercise with the French Air Force will take place in the first half of 2014. 

Sources said the IAF exercise is likely to take place in the IAF base in Gwalior. The bilateral air-exercise happened last time in 2010 in Istres in France.

Le Drian will travel to the IAF base in Gwalior on Saturday, where IAF keeps its three squadrons of Mirage-2000 fighters. In 2011, India signed an expensive Rs 11,000 crore contract with France to upgrade its 51 Mirage-2000 fighters.

The IAF sent two of its Mirage fighters – one single-seater and another twin-seater – to France for upgrading the plane's electronics, avionics and weapon suite. Once they return to India, the rest of the planes will be upgraded in India using Indian technology.“Beyond aircraft, an unprecedented industrial and technological cooperation between our two countries is commencing,” he said, insisting “France is prepared to initiate joint co-development and co-production projects.” 

The French minister said India and France would discuss cyber security within the framework of strategic relations. An Indo-French Cyber Security Dialogue has been launched.