Rafale questions(IE)

Rafale questions(IE)

Context

Government’s reluctance to share data on the price of the aircraft has raised several scenarios, none of them flattering to it

Background of Rafale deal

• IAF raised a requirement: In August 2007, after the Indian Air Force (IAF) raised the requirement for a Medium Multi Role Combat Aircraft (MMRCA), a request for proposal (RFP) for procuring 126 Medium Role Combat Aircraft for the airforce was issued
• Cost: Projected to cost $12 billion (Rs 42,000 crore)
• Transfer of technology:18 of these aircraft were to come in a flyaway condition while there was to be a technology transfer (ToT) for 108 aircraft to be made in India by HAL, Bengaluru. The IAF conducted extensive testing and evaluation and Rafalewas announced as the lowest bidder in 2012
• In November 2014, Dassault Aviation CEO Eric Trappier said that he expected the final contract would be signed by March 2015

Change of plans

In April 2015, Prime Minister of India announced in Paris that India was going to purchase a mere 36 Rafale fighters from France in a government-to-government deal

• The MMRCA tender was withdrawn by July and in September 2016, the government signed a $8.7 billion (over Rs 56,000 crore) deal, with no transfer of technology to India

Plethora of questions

Author has raised multiple questions vis-à-vis this deal.

• What is the price being paid per aircraft?
• Is it comparable or even close to the price being offered to India under the previous government?
• How steep, exactly, are these renegotiated prices given that the government had to drop the technology transfer component for the 36-fighter deal?