Pact on Rafale jets inked, pricing being worked out

It turned to be a case of so near yet so far in case of Rafale fighter jet deal between India and France. The Rafale component and the counter terror cooperation between the two countries, particularly after the Paris terror attacks and Pathankot air base terror strike, remained high on the agenda of talks between Prime Minister Narendra Modi and the visiting French President Francois Hollande.

After Prime Minister Modi’s surprise announcement last April in Paris for purchasing 36 French fighter jets, Rafale, in fly-away condition, it was widely expected that the final deal and the commercial contract would be signed during the visit of President Hollande as chief guest at India’s 67th Republic Day celebrations but the multi-billion dollar deal could only inch forward with India and France signing Inter-Governmental Agreement (IGA) on purchase of jets, meaning that the two government would remain on track and not back off so far as the deal is concerned.

Some “financial’’ aspects blocked the final deal but the issues are expected to be sorted out soon. The IGA on Rafale was among the 14 pacts signed between India and France after wide-ranging and detailed talks between  Modi and President Hollande here on Monday. The talks between the two leaders covered areas like cooperation in counter-terrorism, security, and civil nuclear energy.

“We expect that even the financial aspects pertaining to purchase of Rafale jets will be resolved as soon as possible,” Modi said at a joint press meet with President Hollande who described the signing of the IGA as a “decisive’’ step adding that the financial issues would be sorted out in “couple of days.’’

The two countries are still negotiating the price of 36 Rafale fighter jets which is estimated to be about Rs. 60,000 crore which is considered to be on the higher side by India. A team of high-level officials from France is negotiating the finer aspects relating to the total price of the jets with armaments.

The joint statement, running into 57 points, dwelt upon India-France cooperation in areas like skill development and Make in India, space, economic cooperation, urban development, renewable energies and energy efficiency, climate change, railways and most importantly defence and nuclear energy.

“From Paris to Pathankot, we saw the gruesome face of the common challenge of terrorism...I also commend the strength of your resolve and action these terrorist attacks. President Hollande and I have agreed to scale up the range of our counter-terrorism cooperation in a manner that helps us to tangibly mitigate and reduce the threat of extremism and terrorism to our societies. We are also of the view that the global community needs to act decisively against those who provide safe havens to terrorists, who nurture them through finances, training and infrastructure support,’’ Modi said. 

The joint statement also called upon Pakistan to bring to justice the perpetrators of the November 2008 terrorist attacks in Mumbai, in which  two French citizens had also lost their lives, and to ensure that such attacks do not recur in the future.

While referring to cooperation between French SNCF and Indian Railways, the joint statement said that Delhi-Chandigarh railway line would be upgraded to run high speed trains at 200 km per hour. The French expertise would also be available for upgradation of Ambala and Ludhiana railway stations.

On his second visit to India, Hollande becomes fifth French Head of State or Government to have been invited as the chief guest on India’s Republic Day celebrations. Also the participation of a French military contingent in this year’s parade makes France the only country that has been extended this honour. 

The joint statement noted the two leaders’ shared commitment towards strengthening the close and longstanding strategic partnership between India and France. As strategic partners, both the countries share converging views on key regional and global issues and continue to consult each other closely on strategic and security matters of mutual interest. Significantly, France also reaffirmed its support for India’s candidature for a permanent membership of the UN Security Council and the two sides stressed the need for urgent reform of the UN.