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Monday, April 08, 2013

Differences crop up in fighter aircraft deal

Dassault Rafale |Serious differences have cropped up in the contract negotiations between the Defence Ministry and French firm Dassault Aviation selected for the 126 fighter aircraft deal threatening to delay the country's largest one-time military acquisition.

Dassault has made it clear that it was "technically and practically not feasible to stick to the present obligations", as it is wary of encountering the fate of British telecom company Vodafone, which is facing problems over taxation issues.

In the contract, Dassault wants to be held responsible for only the first 18 aircraft to be supplied by it along with the kits to be supplied by it for the remaining 108 aircraft to be produced by the HAL in India but the Defence Ministry wants it to take responsibility for the quality and timely delivery of all the 126 aircraft.

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