Friday, April 10, 2015

India orders 36 Rafale in France – Obs

Paris (AFP) – After a long suspense, the first visit of Indian Prime Minister Narendra Modi on Friday in Paris resulted in an unprecedented agreement on the sale of 36 Rafale fighter jets to India .

This is the second contract in a few weeks for the French manufacturer Dassault after the sale of 24 Rafale to Egypt in February, which had ended a series of failures in the export .

“I have asked President (Francois) Hollande provide 36 Rafale, turnkey,” said Mr Modi told reporters alongside the French president at the end of talks between the two leaders and their teams. The contract is estimated at nearly 4 billion.

“These 36 Rafale will be built in France,” he told AFP the Minister of Defence, Jean-Yves Le Drian, while stressing that “negotiations on the original agreement (between France and India) continue.”

This initial contract, under discussion since 2012 and which covers the sale of 126 aircraft, of which 108 made India, stumbles on the overall cost of the devices as part of an innovative technological transfers.

Intialement valued at 12 billion euros, it would be closer to 20 billion euros, the cost of manufacture of 108 Rafale “made in India” proving higher than aircraft assembled in France.

Mr. Modi came to power in 2014, wanted out of this impasse by directly controlling devices in France to modernize the army as soon as the Indian Air (IAF), with partly antique Mig-21 and 27 Russian

-. New upcoming negotiations –

The Indian government wants to acquire “as soon as possible,” the 36 Rafale because of a “critical need operational” Indian Air Force he has stressed in a French-Indian joint statement.

“The terms and conditions (of purchase) should (now) be negotiated and our services will discuss these issues in depth to to advance the negotiations, “said Mr Modi.

Mr. Le Drian will travel “soon in New Delhi to implement this agreement,” is it clear in his entourage.

Amid strained relations with Pakistan and China, India, one of the largest arms importers in the world, has embarked on a major modernization of its defense program – aircraft, surface ships, submarines, missiles – a total cost of $ 100 billion.

Such an announcement to acquire 36 Rafale is a boon to the manufacturer Dassault.

After Egypt and India, three other potential purchasers are at least on row: Qatar – with which discussions are continuing for 36 aircraft – the United Arab Emirates for the eventual replacement of 60 Mirage 2000-9, and Malaysia has yet to launch a tender for the acquisition of 16 devices.

Two agreements, including on technical studies were also signed between the French nuclear group Areva and Indian groups in the project to build an EPR nuclear reactor in India while France hoped to make progress on the sale of six EPR reactors in total.

Other agreements were signed in the areas of transport, education, tourism and aerospace.

Welcoming a strategic partnership between the two countries reached “the highest level,” Mr. Holland has also supported Mr Modi after release by Pakistan of Zakiur Rehman Lakhvidu, alleged mastermind of Mumbai attacks that killed 166 deaths in 2008.

“I express to you my indignation whenever a terrorist can be released even though he has a responsibility in an abominable act” said the French president. Mr Modi has done his part no comments on this subject that has infuriated the Indian authorities.

The Hindu nationalist leader, banned from Europe after anti-Muslim riots in Gujarat state in its 2002, performs in Paris and Berlin his first trip to Europe, where he can expect a lavish welcome, strong economic performance of India that shows growth above China.

On Friday, it promotes, with French business leaders, India as industrial base, particularly for export, and as investment location. He will also visit Saturday Airbus site in Toulouse (south-west).

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