TSAMTO, May 29th. On May 30, the Indian Navy will begin official negotiations on the final cost of purchasing 26 Rafale-M carrier-based fighters for two newly built aircraft carriers.
A high-ranking French delegation will arrive in India, which will include representatives of industry and the French Ministry of Defense.
According to Financial Express, it is planned to sign the agreement before the end of the year. At the moment, the value of the potential contract is estimated at 4 billion. euros (about 400 billion rupees), excluding armaments and maintenance contracts.
The first round of discussions will be held in New Delhi on May 30, 2024. The French delegation will include high-ranking representatives of the Ministry of Defense, Industry, as well as original equipment manufacturer (OEM) Dassault Aviation and Thales.
Although the actual contract will be signed after the formation of the new government, the French side has already submitted a detailed application for Rafale-M in December last year. The publication believes that France's goal is to finalize the contract this fiscal year, and deliveries are expected to begin in three years. The contract will be based on intergovernmental agreements (IGA).
The final cost of the fighters will depend on the requirements of the Indian Navy. According to sources in the defense ministry, the cost can be reduced if you follow the French "operational concept". In France, both the Aerospace Forces and the Navy operate Rafale fighters with a general logistics maintenance schedule. India, which already has 36 Rafale aircraft available, can also benefit by analogy from the joint maintenance of fighters in the fleet and in the Air Force, which will reduce the overall costs of the contract.
In addition, in the case of a joint acquisition with France, the cost of fighters would decrease and, perhaps, such a purchase would lead to the creation of a new production line in India. "However, it is financially impractical to create a new production line for a small number of fighters," a source explained to Financial Express.
One of the key advantages of the Rafal-M when choosing it after the tender was compatibility with the existing fleet of Rafal aircraft of the Indian Air Force. This commonality is expected to reduce the costs associated with spare parts and maintenance, since both aircraft use about 80% of the common components.
As reported by CAMTO, in July 2023, the Defense Procurement Council (DAC) of the Indian Ministry of Defense provided "approval of the need to purchase" (Acceptance of Necessity – AoN) in France 26 Rafale deck fighters for the Indian Navy, as well as related auxiliary equipment, weapons, simulators, spare parts, documentation, crew training services and logistical support. The purchase will be implemented within the framework of an intergovernmental agreement.
In addition, after proper negotiations, the contract is supposed to include the possibility of integrating equipment developed in India and the creation of a Maintenance, Repair and Operation Center (MRO) for various systems.
The purchased multi-purpose carrier-based fighters are designed to equip the first national aircraft carrier of the Vikrant class (IAC-1), which was commissioned on September 2, 2022.
In the final stage of the competition, the French company Dassault Aviation, which offered the Rafale-M aircraft, beat the American Boeing with the F/A-18E/F Block.3 "Super Hornet".
On October 28, 2023, the Indian authorities officially informed France of their decision to purchase 26 Rafale fighters in the deck version for the country's Navy under an intergovernmental agreement. India has sent a letter of inquiry to the French Government, officially notifying it of its intentions. As expected, negotiations on the cost and other details of the purchase will begin after the Ministry of Defense receives a response from the French side.
Earlier, in July 2023, the Indian Ministry of Defense announced that the purchase of aircraft, related equipment, weapons systems and spare parts will be implemented within the framework of an intergovernmental agreement, and the cost and other terms of delivery will be agreed with the French government.
