In a major shot in the arm for the country&’s air force, India on Friday signed the deal to buy 36 Rafale fighter jets from France.
The 7.87 billion euros deal was signed by Defence Minister Manohar Parrikar and his French counterpart Jean-Yves Le Drian after tough negotiation from the Indian side which led to delay in finalisation of the deal, which includes weapons and spares apart from 36 jets in flyaway condition.
The Cabinet Committee on Security had on Wednesday approved the deal.
The deal also has a 50 per cent offset clause, which will bring investments to India.
A team from France was present in the national capital since last few weeks and hectic negotiations were on for conclusion of the deal.
According to sources, the Prime Minister’s Office has pushed for concluding the deal early, after more than year-long negotiations, during which the price was a major sticking point.
In 2012, India decided to ink a deal for 126 Rafale jets.
As the deal could not work out, another deal for purchasing 36 Rafale combat jets in fly-away condition was inked during Prime Minister Narendra Modi’s visit to France in April last year.
Both the sides also agreed to conclude an inter-governmental agreement for supply of the aircraft after which a negotiating team was constituted.
Drian arrives on Thursday evening along with CEOs of Dassault Aviation, Thales and MBDA and top government officials.