RoyG wrote:We are stupid and the deal probably includes some hidden things.
Where is Subramanian Swamy when you need him...
RoyG wrote:We are stupid and the deal probably includes some hidden things.
Kashi wrote:$8.3 billion for 36 planes?![]()
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That's daylight robbery if true. Even if this includes weapon systems and offsets.
Are we really that stupid or does this deal include "hidden components" not in the public domain?
Austin wrote:The final figures will be known once MOD signs the deal , also offsets and weapons package etc , We will have to wait till Mr Hollande comes to India
Its good though we are done with this , IAF should be happy as well , Even if it means a truncated MMRCA to baseline number to meet operational needs , MOD would be happy that the saved money would be used in Tejas and other indigenous program
Viv S wrote:In the meantime, we may as well create a baseline to judge the financial aspect of the deal. So.. what in your opinion would be a good price, acceptable price and bad price? (Unless the price is irrelevant.)
Err.. signing a bad deal instead of a worse deal isn't exactly 'saving money'. Of course in this case, buying 36 Rafale may well be the worse option (vis a vis the original MMRCA deal), screwing up logistics by introducing a mere two squadrons of a fighter type requiring an independent support chain.
Austin wrote:I dont know how to define a good price , it would also depend things like Offsets , Weapons Package , Training Package etc , Total Cost of ownership etc
If they negotiated for 2 years post its selection then both sides would have bargained hard to get a good deal satisfactory for both parties.
If it was a bad deal Parrikar would have just cancelled it outright , he took a desicison for mimimum operation numbers needed till 2020 versus squadron strength and used the remaining one to fund Tejas and other program , indeed this is what he said many times.
Viv S wrote:50% offsets. Standard (non-Arab) training package. Assume a generous figure for the weapons package. (Take a look at DSCA releases if you require a benchmark.) And then tell me what range of values sounds reasonable for purchase.
Also, the fact that they scrapped the deal in favour of a new one, after 2 years of negotiation hardly speaks well of the terms on offer.
No he didn't. Thedecision'breakthrough' compromise came from the PMO, and caught Parrikar & the MoD flat-footed (though they've dutifully followed through on the directive from the top). Besides, 'because __ signed it so it must be right' implies that that the individual is infallible, a presumption that's best avoided when the facts can be examined independently.
arthuro wrote:There is the initial investment on facilities, spare parts, trainings, weapons...To amortize this initial investment on such a small number of airframe will of course rise the unit costs sharply. And I am not even counting the 50% offsets which has to have an impact on cost.
.....
My view is that IAF is aware of LCA and SU-30 limitations despite their respective qualities and is looking for qualities associated with western fighter jets & technology. Higher level of integration, sensor fusion, ergonomics, survivability to name a few.
Austin wrote:You just assume these are part of package , MOD would tell us the officall package.
If they scrapped the MMRCA and still went for Rafale it tells lot about the aircraft , when they could have gone for no 2 or 3 in the MMRCA race.
I can say the same just because you say it is wrong does not mean it is wrong or bad deal![]()
I would take Parrikar word any day over yours , He is MOD and knows things only he or PMO would be privy too.
My own opinion is its a good deal truncated as it might be , Parrikar said 90000 crore , its better to spent major on indigenous system
arthuro wrote:There is the initial investment on facilities, spare parts, trainings, weapons...To amortize this initial investment on such a small number of airframe will of course rise the unit costs sharply. And I am not even counting the 50% offsets which has to have an impact on cost.
But once this initial investement is done, the case for aditional airframes will become much more attractive for a future GoV. Price could be cut by more than 50% in case of follow-up buy.
My view is that IAF is aware of LCA and SU-30 limitations despite their respective qualities and is looking for qualities associated with western fighter jets & technology. Higher level of integration, sensor fusion, ergonomics, survivability to name a few.
Austin wrote:The cost for Rafale is the life cycle cost and not just the fly away cost , that was what MMRCA deal brought on the table and that cost would be higher than just fly away cost ,A link provided earlier mentioned 3x-4x times
More ever its just a strawman argument to says Junta is not privy etc because all deal are done by Government only, what is junta privy too about past defence deals
Its great that finally the MOD and Dassault has come to a conclusion on this deal , Time to Look Ahead for Rafale in IAF colours
Viv S wrote:Even a modest CPFH of $20K/hr puts the operating cost at $140M each over its life-cycle of 7000 hrs. Which would make the acquisition cost an absurdly low $90M/unit.
Besides which life-cycle costs are computed to determine which entry is L1, not to calculate the value of the purchase contract. The latter reflects only the value of goods and services delivered by the OEM.
Either the deal is above board or its not i.e. what you see is what you get. And if its not, then its just as easy to argue that the padded cost is to cover up the existence of kickbacks, as it is to say that the surplus is paying for secret transfers of nuclear tech and like. (Neither of which is likely to be true.)
Long way ahead, if the deliveries are carry on to 2023.
Kashi wrote:$8.3 billion for 36 planes?![]()
![]()
That's daylight robbery if true. Even if this includes weapon systems and offsets.
Are we really that stupid or does this deal include "hidden components" not in the public domain?
Aditya_V wrote:Kashi wrote:$8.3 billion for 36 planes?![]()
![]()
That's daylight robbery if true. Even if this includes weapon systems and offsets.
Are we really that stupid or does this deal include "hidden components" not in the public domain?
in 2011 - M 2000 upg costed USD 50 Millin an Aircraft, can imagine what is the cost of TOT with Manufacture.
Septimus P. wrote:What an absurd waste of money and more importantly time. For the same cost we could have had around 80 Super MKI and most of them delivered by 2023. There is no way 36 Rafale can outperform a fleet of 80 Super MKI.
Austin wrote:...
... , Lets dump the 2K , 29 Jags and go for all MKI fleet that would turn to be cheaper with large number . why have any medium fighter at all.
...
Austin wrote:Septimus P. wrote:What an absurd waste of money and more importantly time. For the same cost we could have had around 80 Super MKI and most of them delivered by 2023. There is no way 36 Rafale can outperform a fleet of 80 Super MKI.
Thats hardly an argument , Lets dump the 2K , 29 Jags and go for all MKI fleet that would turn to be cheaper with large number . why have any medium fighter at all.
If IAF wanted a Super MKI they wouldnt have even entertained the MMRCA in 2004 by then we had a sizable fleet of MKI
srikven wrote:When Modi spoke during his visit to France, he mentioned that he requested Hollande to deliver 36 Rafales in 2 years ?? No ??
NEW DELHI: India's largest-ever military deal is likely to bring in big business for the private sector with the French side looking to set up a production centre for the Rafale fighter aircraft as well as a low-cost executive jet in India, besides sharing vital aircraft technology for the indigenous Tejas project.
Officials familiar with the project have told ETthat major partners for this 'Make in India' project are currently being identified by the French side and are likely to include Anil Ambani's Reliance Defence Systems, Noida-based Samtel and Bharat Electronics. These officials, both Indian and French, spoke on the condition they not be identified.
Spokespersons of the Anil Ambani-led Reliance Group told ET "there is no development". Officials on the French side told ET, on condition of anonymity, that the agreement between Rafale and an Indian partner will be on the lines of the 2012 agreement between the French company and the Mukesh Ambani-led Reliance Industries.
The NDA government had reformatted the UPA government deal and ordered 36 aircraft, instead of 126. The Rafale fighter deal, which will bring in at least $4.5 billion into 'Make in India' projects as per the contract being negotiated, is set to involve a third production line for the aircraft in India, French officials have told ET.
While two lines for the fighter are currently active in France at the same facility, a third line in India would take care of export orders for the fighters and also possible future orders by the Indian Navy and Air Force. The line would also support the production of a low-cost variant of the 'Falcon' executive jet for the Indian and Asian markets.
"It will not be possible to roll out any of the 36 fighters being acquired by India from the production line as it would take time to set up but future orders, including exports, will be fulfilled with the new line," a person involved in the discussions has told ET. "At most, the final painting of the last ten aircraft to be delivered to India could be carried out at the Indian assembly line. This itself is a very high technology process as the fighter has a special anti-radar coat," the person added.
Besides the joint production facilities in India, the French side is also set to transfer some key technologies to DRDO that would benefit the Light Combat Aircraft (LCA) project. A complete list of the technology to be transferred is being finalised but would include several systems to make the LCA more effective.
Technology to be transferred includes the air intake system for the fighter, an undercarriage for the naval variant of of the LCA, cutting edge radar absorbing painting technology as well as an integrated production line software and management system for the fighter aircraft.
While the main Rafale contract is likely to be signed this financial year, as was reported by ET, a separate contract for armament systems will be signed at a later date with French company MBDA. A partnership for transfer of technology and production could be inked with the Defence Research and Development Laboratory (DRDL) that specialises in advanced armaments.
Engineer-General Stephane Reb, Director of the International Directorate of the DGA (General Directorate for Armament) of the French Ministry of Defence is in New Delhi this week to finalise the inter-governmental agreement draft that is likely to be signed before January 26 when French President Francois Hollande will visit India as the Chief Guest at the Republic Day Parade.
Rafale Deal to Be Signed on Eve of Hollande’s India Visit; 36 French Fighters Will Arrive Over 7 Years
(Source: Indian Express; published November 26, 2015)
By Sushant Singh
NEW DELHI --- India and France are set to sign the deal for 36 Rafale fighter aircraft on the eve of French President François Hollande’s visit to India for the Republic Day celebrations. The draft contract, which envisages supply of the first fighter within 36 months of signing the deal, has been finalised.
(French President Francois Hollande will be the chief guest at the Republic Day parade of January 26, 2016, The Hindu reported Nov. 25.—Ed.)
The supply of full complement of 36 fighters to the Indian Air Force (IAF) will be completed within seven years of signing the deal. The induction of the 36 fighters will add to the IAF squadron strength which is now down to 34. At least 44 fighter squadrons are needed to be comfortable against China and Pakistan.
The proposal for buying 36 Rafale fighters from France in a government-to-government deal was announced during Prime Minister Narendra Modi’s visit to Paris in April.
It followed a long-drawn tender for acquisition of 126 medium multi-role combat aircraft (MMRCA) for the IAF in which the Rafale had been selected as the L-1 or lowest bidder after a decade of evaluation, testing and negotiations. Mired in controversies over pricing and transfer of technology, the process was scrapped by Defence Minister Manohar Parrikar earlier this year.
Industry sources said the price of a Rafale fighter in the current deal has been fixed at the 2007 base rate plus an escalation formula agreed upon by both sides. As per commercial bids received for 126 fighters, plus an increment of 5.5-7.5 per cent per year applied on different sub-systems, items and services as per the escalation formula, the final price for the 36 fighters is expected to be around $8.3 bn.
The draft agreement states that all 36 fighters will be supplied by Dassault Aviation in a fly-away condition. To avoid any complications, the two sides agreed for the same SOP (standard of preparation or technical specifications) for the Rafale fighters as agreed upon in the tender for 126 aircraft.
Sources said Dassault was keen to include improvements in the SOP, with limited change in pricing, but the Indian side did not want to introduce new elements in the negotiations.
Defence ministry sources told The Indian Express that the clause for 50 per cent offsets, as mandated in the 126 aircraft proposal, shall be applicable to the current deal.
According to industry sources, the offsets commitment will now be fulfilled through a private vendor. This is a major difference from the earlier deal, where public-sector Hindustan Aeronautics Limited (HAL) was to make 108 fighters in India.
Anil Ambani-owned Reliance Defence Limited (RDL) is said to be the leading contender for discharging the offsets for the 36 fighter deal.
Defence ministry sources say that Dassault and RDL have to fulfil the offset commitment.
Confirming it is constructing a greenfield aerospace facility in Nagpur which will start production in FY 2016-17, RDL said it has not entered into an agreement with Dassault Aviation so far.
Austin wrote:Septimus P. wrote:What an absurd waste of money and more importantly time. For the same cost we could have had around 80 Super MKI and most of them delivered by 2023. There is no way 36 Rafale can outperform a fleet of 80 Super MKI.
Thats hardly an argument , Lets dump the 2K , 29 Jags and go for all MKI fleet that would turn to be cheaper with large number . why have any medium fighter at all.
If IAF wanted a Super MKI they wouldnt have even entertained the MMRCA in 2004 by then we had a sizable fleet of MKI
Austin wrote:Rafale is being bought to replace depleting squadron strength of 21 and 27 and even Jags that were inducted in early 80's about the same time as 27 , it certainly cant be a 1:1 replacement but 3 squadron would give it enough teeth to replace 5-6 squadron of above type thats suppose to be retired by 2022-23.
Tejas production numbers are doubtful to catch up unless one sees it happen and too many MKI would make IAF top heavy.
Austin wrote:Tejas production numbers are doubtful to catch up unless one sees it happen and too many MKI would make IAF top heavy.
Septimus P. wrote:Austin wrote:Tejas production numbers are doubtful to catch up unless one sees it happen and too many MKI would make IAF top heavy.
Tejas numbers will catch up, the 120 aircraft order is cleared, so HAL has to deliver them all by 2023. As for IAF being TOP heavy, upgrading the Mirages, Jags ensures it has credible medium fighters till AMCA arrives. No rush here.
Austin wrote:...
When it comes to HAL seeing is believing , Lets see whats the kind of production number they can churn out each year , They fell short even for lic production built they have been doing since years
According to sources, it could well be the F-18 Super Hornet that had competed with the Rafale when India was on the lookout for 126 MMRCAs. Recently, Boeing has offered to set up a manufacturing facility in India and manufacture F-18s to suit the country's needs.
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