Rafale deal yet to be finalised, says Manohar Parrikar

The Centre on Tuesday said the inter-government agreement and offset contract for the multi-billion euro Rafale fighter jet deal is yet to be finalised. In a written reply to the Rajya Sabha, defence minister Manohar Parrikar said details, including transfer of technology through offsets, will emerge after the negotiations are completed. “The negotiations are underway and the IGA and offset contract are yet to be finalised,” he said.

The minister said 36 aircraft being procured will have advanced features, like advanced electronically scanned array radar, mid-air refuelling and adva-nced electronic warfare equipment, as part of their design. According to defence sources, the deal is estimated to be worth around euro 7.89 billion.

The price was brought down from nearly euro 10 billion, as sought initially, due to various reasons, including the discount offered by the French government and reworking of some criteria.

The deal comes with a clause to ensure the delivering of 50 per cent offsets, creating business worth at least euro 3 billion for smaller Indian companies and creating thousands of new jobs in India through the offsets.

Meanwhile, in another reply, Mr Parrikar said 18 more Tejas aircraft in initial operation clearance standard are planned for induction by 2018-19, besides the two already inducted.