French defence minister seen pushing $15-billion Rafale deal in India

French defence minister Jean-Yves Le Drian who is on a two-day official visit to India, is expected to push the $15-billion deal to supply 126 Rafale medium-range multi-role combat aircraft (MMRCA) for the Indian Air Force.

The deal, which France struck with India beating other European competitors and Russian manufacturers, however, has been stuck on pricing issues.

Both parties have so far failed to reach a consensus on the pricing of the deal, putting a question mark on the agreement.

The deal, which was earlier expected to be signed during French President Francois Hollande's visit to this country in February this year, was not signed as negotiations were still on.

France also plans to sell 197 helicopters to the Indian Army. This will be France's second such attempt after a similar deal worth $600 million got cancelled in 2007.

Le Drian, who is in India at the invitation of the minister of defence A K Antony today held detailed discussions on regional and international security challenges of mutual interest.

They also reviewed the status of bilateral defence cooperation and the progress in various areas since their discussions in February 2013, during the state visit of the French President to India.

The French minister of defence is on an official visit to India from 25 to 27 July 2013.

The ministers noted that the ongoing strategic dialogue and defence cooperation are important and mutually beneficial to both nations.

The ministers also noted that the range and depth of defence exchanges and interactions between the two sides are being steadily enhanced in areas of mutual interest and in a spirit of mutual understanding, respect, trust and support, taking account of respective security interests.

The ministers also agreed on increased exchanges between respective defence institutions and armed forces of the two countries, including in the areas of military education and training and through the conduct of military exercises.

India and France will be conducting bilateral defence exercise among the three wings – Army, Navy and the Air Force. These exercises, codenamed 'Shakti', `Varuna' and 'Garuda', will be held between the second half of 2013 and the first half of 2014.

Officers of the Indian and French armed forces have also been attending courses in each other's institutions, including at the French War College in Paris and the National Defence College and Defence Services Staff College in India.

The ministers also discussed co-operation in the areas of defence equipment and technology collaboration, including in high technology areas involving joint research and development and transfer of technology.

The Indo-French High Committee on Defence Cooperation (HCDC), which is scheduled to meet in France in October, is expected to finalise practical measures to expand and deepen bilateral partnership in defence.