Mega defence deals, 26 Rafale jets acquisition on cards during Modi’s France visit

Dalip Singh Updated - July 10, 2023 at 09:28 PM.
Prime Minister Narendra Modi and French President Emmanuel Macron (file photo) | Photo Credit: PTI

India and France are working on a detailed roadmap for bilateral defence cooperation during Prime Minister Narendra Modi’s two-day visit to Paris on July 13. The two countries are expected to sign a deal for the acquisition of 26 Rafale N aircraft worth around ₹90,000 crore, besides exploring industry-level engagement in multiple ways, such as a joint working group and a start-up corridor.

The defence procurement board (DPP), headed by Defence Secretary Giridhar Aramane, met on Monday and cleared the Rafale N deal for the Indian Navy. The DPP assists the Defence Acquisition Council (DAC), headed by Defence Minister Rajnath Singh, which gives the final mandatory nod for arms purchase agreements. The DAC, it is learned, is slated to meet on Wednesday to clear French deals after Singh returns from an official tour of Malaysia.

The Indian Navy had opted for Dassault’s Rafale N against the F-18 Super Hornet manufactured by US-based Boeing to arm its indigenously built aircraft carrier, INS Vikrant. Of the 26 Rafale fighter jets, 22 would be single-seaters, and the remaining four would be double-seat trainer versions.

India is also likely to buy three Scorpene-class submarines for the Navy as part of Project 75 and build them under repeat orders at the Mazagon Dockyards Limited in Mumbai, said sources. A helicopter engine deal is also said to be on the cards.

Sources said the partnership with France is critical to Aatmanirbhar Bharat plan of co-developing core technologies, especially in engines for air and naval platforms, which would make India a net exporter from an importer of arms.

The joint working group would encourage focussed interaction between the French and Indian industries to help ascertain space in the global supply chain and in each other’s markets. India is keen to give international exposure to its defence companies, building on existing government as well as private mechanisms such as the High Committee for Defence Co-operation, the Society of Indian Defence Manufacturers (SIDM), and the French Aerospace Industries Association.

Defence start-up corridor

Sources said the possibility of a defence start-up corridor may also work out, which would help India incubate next-generation technology. A defence acceleration ecosystem is also being talked about to bring stakeholders together for ease of doing business between the countries.

The CMDs and CEOs of three leading defence firms—Hindustan Aeronautics Limited, Tata Advanced System Ltd (TASL), and Mahindra & Mahindra—are accompanying Modi, who has been invited as Guest of Honour at Bastille Day on July 14, for a separate roundtable between CEOs of defence industries in the two countries. One of them confirmed to businessline that he was travelling to Paris for business opportunities.

France has emerged as the second-largest supplier of military systems to India after Russia. For years, French defence and aerospace companies such as Safran, Naval Group, Thales, and MBDA have been operating in India.

Published on July 10, 2023 15:08

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