Indian Industry Could Lose Out in Revised Rafale Deal
Neelam Mathews Aug 19 2015 AIN. Credit. Neelam Mathews India’s expanding aerospace industry has expressed regret about the government’s decision to buy 36 Dassault Rafale combat jets directly from France, without an offsets clause. Delhi has committed to signing the inter-government contract by the end of calendar year 2015, AIN has learned from sources close to the negotiations . The tender for 126 medium multi-role combat aircraft ( MMRCA ), which has now been withdrawn, specified 50 percent offsets as well as licensed production of 108 aircraft. Negotiations on the MMRCA faltered on the liability clause between government-owned Hindustan Aeronautics ( HAL ) and Dassault, which was not willing to take responsibility for HAL ’s work. “ So much for the Make in India program,” said an Indian defense vendor, who told AIN that the valuable MMRCA project would have boosted the aerospace industry in India. A num...