The defense ministry on Thursday approved the acquisition of 26 Rafale-Marine fighter jets and three Scorpene diesel-electric submarines from France, paving the way for the formal announcement of the two proposed mega deals at the Modi-Macron summit on Friday.
The Rajnath Singh-led Defence Acquisitions Council (DAC) accorded the ‘acceptance of necessity (AoN)’ to the twin procurements for the Navy, which together will cost upwards of Rs 80,000 crore (9 billion), sources told TOI.
The actual inking of the contracts will take place after extensive techno-commercial negotiations, which will take several months and the final approval by the Cabinet Committee on Security. “The final prices will be subject to those negotiations,” a source said.
Both deals are critical for the Navy, which is grappling with a depleting conventional submarine fleet as well as an inadequate number of fighters to operate from its two aircraft carriers.
The proposed inter-governmental agreement for the Rafale-M fighters will include the off-the-shelf purchase of 22 single-seat jets and four twin-seat trainers, along with associated equipment, weapons, simulator, spares, crew training and logistic support. “This deal will cost an estimated Rs 50,000 crore, with deliveries of the jets to begin around three years after the contract is inked,” a source said.
The MoD, on its part, said the price and other terms of the purchase will be negotiated with the French government after taking into account all relevant aspects, including the “comparative procurement price of similar aircraft by other countries”.
The three Scorpene submarines to be constructed at the Mumbai-based Mazagon Docks (MDL), which will have air-independent propulsion (AIP) developed by DRDO for greater underwater endurance, in turn, will cost around Rs 30,000 crore. “The first new submarine should roll out five to six years after the contract,” the source said.
The three new submarines will follow the first six Scorpenes constructed at MDL in collaboration with French M/s Naval Group for over Rs 23,000 crore under ‘Project-75’, which was hit by huge time and cost overruns after being inked in 2005. With the sixth Scorpene now slated for delivery by early-2024, all these vessels will also be retrofitted with the indigenous AIP in the years ahead.
