Most 'hitches' in Rafale deal resolved, says MoD

India and France have resolved most of the ‘hitches’ in the multi-billion Euro Rafale deal and the remaining issues will be cleared in the next Defence Acquisition Council meet, scheduled to be held on Thursday, Minister of State for Defence Rao Inderjit Singh said on Tuesday.

He also defended the cost of the aircraft when a reporter questioned the estimated Rs 65,000 crore deal at a time when some people in the country were eating ‘rotis made of grass’, saying without the nation being secure, even that would not be possible.

The meeting of the DAC, the apex body of the Defence Ministry for procurement, is likely to take place on April 21, a day after Defence Minister Manohar Parrikar arrives in India from his visit to China.

Hoping that the Rafale deal would be inked soon, Indian Air Force Chief Arup Raha said, “It is at a very advanced stage.”

“I can only tell you this that most of the hitches that were there, have been addressed. A few (remaining) issues will be addressed, when possibly the matter comes up before the DAC. They shall be addressed in the next DAC. And thereafter I think the road shall be clear,” Singh told reporters in New Delhi.

He was asked as to when the deal is likely to be signed.

When the same question was put to Air Chief Marshal Raha on the sidelines of an IAF seminar, he said, “We have seen so many years go past. How can I give an assurance? But it is in a very advanced stage.”

The junior defence minister brushed aside a suggestion that at least six indigenously made Tejas Light Combat Aircrafts can be bought for the price of one Rafale plane, saying the two aircraft were totally different in nature and that the IAF needed both.

Asked by a TV reporter as to how the government can justify the price of Rafales at a time when people in some parts of the country are ‘eating rotis made of grass’, Singh said development can happen only when the borders and the sky over the country is safe.

“Development can happen in a country only when the borders are safe and when the sky over the country is safe. And if that security is not there, rotis made of grass also cannot be eaten.

“Hence, Rafale is needed. This is a different kind of aircraft. LCA is a different kind of aircraft. Both are needed,” he said, adding that efforts are being taken to ensure that money allocated for defence is spent judiciously to ensure that the air force is made stronger.  India and France could firm up the order for the purchase of 36 Rafale combat planes they have managed to narrow down their differences over pricing.

The development comes nearly four months after Prime Minister Narendra Modi and French President Francois Hollande signed a memorandum of agreement for aircraft’s purchase.

The Indian side has been negotiating hard to bring down the price, with Parrikar refusing to buckle under pressure even as questions were raised about the delay in signing of the contract.

Sources said the price for 36 Rafales, as per the United Progressive Alliance government’s tender, keeping the cost escalation and dollar rate in mind, comes to a little over Rs 65,000 crore.

This includes the cost involved in making changes India has sought in the aircraft, including Israeli helmet-mounted display and some specific weaponry.

“The effort is to bring down the price to less than Euros 8 billion (Rs 59,000 crore),” the sources said.

The final deal may be clinched by May-end.