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Wednesday, January 07, 2015

Complications in Rafale deal; French delegation may visit India for talks

Dassault RafaleThe multi-billion dollar Rafale fighter jet contract with France has run into rough weather over a guarantee clause and steep rise in price with India making it clear that the ball is in France's court as it looks at the option of buying more Russian Sukhoi-30 MKI warplanes as a back-up plan.

India is insisting that Dassault Aviation, which manufactures Rafale, cannot renege on the Request for Proposal (RFP) clauses, which it had initially agreed to.

The situation has come to such a level that France has been forced to send an empowered delegation later this month to "solve all remaining issues" to salvage the contract.

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