Govt: New deal better in terms of maintenance, pricing, delivery


The Rafale deal clinched by the Modi government is better in terms of “pricing, delivery and maintenance” than the contract UPA was negotiating, which floundered due to the French company and HAL failing to agree on costs, the Centre is understood to have told SC.

Details of the decision-making process state that Rafale’s maker Dassault Aviation and Hindustan Aeronautics LimitedNSE -0.34 % could not resolve differences over man hours — and therefore costs — for production licence of 108 of 126 fighters. The HAL estimate of man hours exceeded Dassault’s by 2.7 times and proved a deal-breaker that sent it into a limbo for three years till the 2014 polls.

The government has said that efforts to revive negotiations under the terms that were being discussed proved a non-starter and a decision was taken to recast the deal, keeping in mind the depletion of India’s fighter fleet as adversaries added aircraft, missile systems and radars to their war-fighting capacities. Read More

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