Rafale MoU with France, but price still unresolved

New Delhi: Despite hectic last-minute negotiations during French President Francois Hollande’s ongoing visit, India and France on Monday failed to agree on the cost of the 36 Rafale fighters. The two sides expressed optimism that cost issues will be resolved soon and an MoU signed  on the inter-governnmental agreement for the purchase of the jets.

The IGA will be concluded “in its entirety” once the cost issues are agreed upon, foreign secretary S. Jaishankar said.

Speculation is rife that France wants to sell 36 Rafales including weapon systems for about 11.5 billion euros, while India wants the price lowered to around eight billion euros (Rs 59,000 crore).

In another development on the civil nuclear energy front, India and France decided on the construction of six nuclear power reactors at Jaitapur in Maharashtra, instead of the two units agreed earlier. France also wants to build on the Post-Paris Agreement world with India.

India and France signed 14 agreements in different areas. (Photo: DC)

India-France ink 14 pacts
India and France on Monday signed 14 agreements in different areas, from defence and space to culture. France will also take part in Isro’s next mission to Mars.

The agreements followed hour-long talks between Prime Minister Narendra Modi and French President Francois Hollande.

A joint statement said Prime Minister Modi and President Hollande “welcomed the conclusion of the Inter-Governmental Agreement (IGA) on the acquisition of 36 Rafale fighter aircraft in flyaway condition, except for some financial issues... which they agreed must be resolved as soon as possible.”

Referring to this later, Mr Modi said: “It is a matter of joy that except for the financial aspects, the IGA was concluded. There is a consensus that the financial aspects will be resolved.” French President Hollande was quoted by news agencies as saying the signing of the IGA was a “decisive” step and that the financial issues will be sorted out in a “couple of days”.