New Delhi, Delhi, IndiaSep 19, 2016, 05.36 AM (IST)
India is set to finalise the 7.87 billion Euros deal for 36 Rafale fighter jets as French defence minister Jean Yves Le Drian arrives in India on September 22 along with CEOs of Dassault Aviation, Thales and MBDA to sign the Inter-Governmental Agreement (IGA).
The cost, offsets and service details have been finalised and work is being done on the IGA, Indian news agency the Press Trust of India reported.
A team from France has already arrived in the Indian capital, New Delhi, and a group of translators are going through the contract.
Once the IGA is fixed, the document will go for final clearance to the Cabinet Committee on Security.
The fighter jet is expected to arrive in India in 2019, with an annual inflation capped at 3.5 per cent. The weapon systems will include new-age beyond visual range missile 'Meteor' and Israeli helmet-mounted display.
India managed to save over 590 Euro million through tough price negotiations, which began this year in January, according to PTI. The deal was delayed by pricing and offsets issue as India wanted a better contract, the news agency said.
France agreed for a 50 per cent offset clause after Indian Prime Minister Narendra Modi intervened. This will create at least 3 billion Euros worth of business for Indian companies and jobs through offsets.