A $ 15 BILLION (92000 CRORE) DEAL TO BE FINALIZED BY INDIAN AIR FORCE. AS PER THE IAF OFFICIAL THE DEAL OF 126 RAFALE FIGHTER JETS FROM FRANCE’S DASSAULT AVIATION (AVMD.PA) WILL BE DONE BY THE END OF FISCAL YEAR 2013-2014.
RAFALE WAS PICKED IN JANUARY 2012 AFTER A BIDDING CONTEST AGAINST EUROFIGHTER TYPHOON AIRCRAFT, MADE BY A CONSORTIUM INVOLVING EADS, FINMECCANICA AND BAE SYSTEMS. BUT THERE WERE DIFFERENCES OVER THE ROLE OF INDIA’S STATE-RUN HINDUSTAN AERONAUTICS LTD IN MANUFACTURING THE JETS.
AS PER THE DEAL 18 READY-MADE JETS WOULD BE PROVIDED BY DASSAULT AND THE REST WOULD BE MANUFACTURED IN INDIA.
INDIA’S GOVERNMENT WANTS TO ENCOURAGE INDIAN COMPANIES TO PARTNER WITH FOREIGN SUPPLIERS TO REDUCE ITS RELIANCE ON IMPORTS AND BOOST A DOMESTIC DEFENSE INDUSTRY THAT IS DOMINATED BY UNDERPERFORMING PUBLIC SECTOR COMPANIES. LEADING TO THIS HINDUSTAN AERONAUTICS WILL BE THE LEAD MANUFATCURING PARTNER IN THE SAID DEAL. HINDUSTAN AERONAUTICS IS IN TRY TO DEVELOP A LITTLE COMBAT AIRCRAFT FROM A LONGER PERIOD WITH NO SUCCESS SO FAR. EARLIER DASSAULT HAD EXPRESSED DOUBTS IN ABILITY OF THE LOCAL PARTNER TO MAKE SUCH A CLASSY AIRCRAFT.
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