Suspense continues over Rafale fighter aircraft deal

Suspense over the multi-billion dollar Rafale fighter plane deal continued on Friday as French Ambassador Francois Richier said a "complex negotiation" is going on, just two days ahead of the visit of his President Francois Hollande to India.

"The discussions are taking place at present. So I cannot say what will be the outcome of this. They are not finalised. Indeed it is a complex negotiation," Richier told reporters in New Delhi.

The envoy said, "Of course I will share with you that I am hopeful. But hopeful does not mean we have certitude. Work is being conducted with a lot of energy."

An inter-government framework agreement is expected to be signed during the visit of Hollande but a final contract will take time as the cost negotiations are still on.

"There will be an inter-government agreement because it is a government to government negotiation. Everything will be within this IGA and its annexure. I can confirm this because it is no surprise," he said.

Richier later clarified that he did not mean that the IGA will be signed for sure during the visit.

Defence sources said the main problem relates to the cost issue. It is expected that the final contract for the 36 aircraft, including its missile system and others, will cost around Rs 60,000 crore.

Air Marshal Rakesh Kumar Singh Bhadauria is heading the price negotiations from the Indian side.

Meanwhile, asked about the co-development project of a short range surface-to-air missile (SR-SAM) by the Defence Research and Development Organisation with MBDA of France, the Ambassador said, "We are working on it.

"Of course, we expect a decision on this by the Indian side. May be not now but in the future," he said.

Replying to a query on possible order for more Scorpene submarines besides the six already under construction, Richier said, "Let us focus on Rafale for now."