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Is Rafale deal overpriced?
India wanted Dassault to ensure the quality of aircraft produced by HAL, but Dassault refused to do so. In January 2014, it was reported that the cost of the deal had escalated to $30 billion (₹1,86,000 crore), with each aircraft costing $120 million (₹746 crore).
Why did Rafale cost increase?
The Narendra Modi government’s decision to accept the cost of €1.3 billion for the design and development of 13 India-specific Enhancements was the major reason for the increase in per-aircraft price in the Rafale jet deal, The Hindu reported on Friday. The cost was later negotiated down to €1.3 billion.
For what cost did India buy Rafale?
The BJP-led NDA government at the Centre had inked a Rs 59,000-crore deal on September 23, 2016, to procure 36 Rafale jets from French aerospace major Dassault Aviation after a nearly seven-year exercise to procure 126 Medium Multi-Role Combat Aircraft (MMRCA) for the Indian Air Force did not fructify during the UPA …
How expensive is Rafale?
He added that “arrangements for this event were made mostly through local resources of IAF” and the “total expenditure on the event was Rs 41.32 lakh, including Rs 9.18 lakh in GST”. He said that by March, the number of Rafales in the country will go up to 17 and that all 36 fighters will be in India by April 2022.
What is the cost of Rafale deal?
Congress leader Rahul Gandhi asked why each Rafale jet was purchased by the government at a cost of Rs 1,670 crore while the erstwhile Congress-led dispensation struck a deal for Rs 526 crore, and why the offset contract was given to a “bankrupt” private firm instead of the public-sector Hindustan Aeronautics Limited ( …
What is the Rafale deal controversy?
The Rafale deal controversy is a political controversy in India related to the purchase of 36 multirole fighter aircraft for a price estimated at €7.8 billion by the Defence Ministry of India from France’s Dassault Aviation.
How much did the Rafale deal with Dassault cost India?
India wanted Dassault to ensure the quality of aircraft produced by HAL, but Dassault refused to do so. In January 2014, it was reported that the cost of the deal had escalated to $30 billion (₹ 1,86,000 crore), with each aircraft costing $120 million (₹746 crore).
What is the difference between MMRCA and the current Rafale deal?
The MMRCA deal was only made for 126 Rafales in fly-away condition, nothing regarding the weapons package or maintenance had been included in it. While the current deal includes 36 Rafales in fly-away condition, also making Dassault promise an offset of more than 3 billion euros.
Why was the Rafale chosen as the lowest bidder?
Rafale was chosen as the lowest bidder based on life-cycle cost, which is a combination of cost of acquisition, operating cost over a duration of 40 years and cost of transfer of technology. The negotiations with Dassault dragged on due to disagreements on warranty for aircraft produced by HAL.