Rafale: India, France ink IGA, to sort out 'financial aspects'


New Delhi, Jan 25 (PTI): India and France today inked an Inter-Governmental Agreement (IGA) on the sale of 36 French fighter jets, Rafale, but were unable to sign the final deal due to some "financial" aspects, which are expected to be sorted out in "couple of days".

This agreement was among the 14 pacts signed between the two countries after extensive talks between Prime Minister Narendra Modi and visiting French President Francois Hollande which focused ways to enhance cooperation in counter- terrorism, security and civil nuclear energy.

"...Leaving out financial aspect, India and France have signed Inter-Governmental Agreement on purchase of 36 Rafale fighter jets. We expect that even the financial aspects pertaining to purchase of Rafale jets will be resolved as soon as possible," Modi said at a joint press event with Hollande.

Terming the signing of the IGA as a "decisive" step, the French President said there are some financial issues that will be sorted out in "couple of days".

The two countries are in negotiations for 36 Rafale fighter jets in fly away conditions since the announcement for the deal was made by Modi in April during his visit to France.

However, the final deal is yet to be sealed as both sides are still negotiating the price which is estimated to be about Rs 60,000 crore. A high-level team from France is here and carrying out last minute negotiations.

Apart from defence cooperation, the talks between the two leaders primarily focused on ways to boost counter-terrorism cooperation in the aftermath of attack in Paris in November last and Pathankot terror strikes earlier this month.

"From Paris to Pathankot, we saw the gruesome face of the common challenge of terrorism...I also commend the strength of your resolve and action these terrorist attacks. President Hollande and I have agreed to scale up the range of our counter-terrorism cooperation in a manner that helps us to tangibly mitigate and reduce the threat of extremism and terrorism to our societies.

"We are also of the view that the global community needs to act decisively against those who provide safe havens to terrorists, who nurture them through finances, training and infrastructure support," Modi said.

The two countries reiterated their call for Pakistan to bring to justice their perpetrators and the perpetrators of the November 2008 terrorist attacks in Mumbai, which also caused the demise of two French citizens, and to ensure that such attacks do not recur in the future, a joint statement issued after the talks said.

"Daesh has attacked us. The ISIS is provoking us but we are determined to take the right decision. We will strike them time and again those who kill our children. I would like to thank you for the support in dire circumstances. France will never forget. We have decided to strengthen our cooperation against terror," Hollande said.

The two sides resolved to step up their joint effort to counter violent extremism and radicalisation, disrupt recruitment, terrorist movements and flow of Foreign Terrorist Fighters, stop sources of terrorist financing, dismantle terrorist infrastructure and prevent supply of arms to terrorists.

"To this end, they committed to further develop exchanges in the fields of intelligence, finance, justice and police. They welcomed the strengthening of the cooperation between Indian and French counter terrorism authorities and units, in particular between their cybersecurity experts," the joint statement said.

Stressing that terrorism cannot be justified under any circumstance, regardless of its motivation, wherever and by whomsoever it is committed, Modi and Hollande pitched for decisive actions to be taken against Lashkar-e-Tayibba (LeT), Jaish-e-Mohammad (JeM), Hizb-ul-Mujahideen, Haqqani Network and other terrorist groups such as Al Qaeda.

They also condemned the recent terror attacks in Pathankot and Gurdaspur in India.

On other issues which were discussed, Modi said, "From smart cities, locomotives, railway tracks and nuclear power. These are all foundations for building a new commercial partnership."

On his part, Hollande asserted that "There is no better trust than sharing civil nuclear technology" and hoped that the issues pertaining to the six reactors at Jaitapur nuclear plant will be settled in one year.

In pursuance of the 2008 civil nuclear pact, the two leaders encouraged their industrial companies to conclude techno-commercial negotiations by the end of 2016 for the construction of six nuclear power reactor units at Jaitapur the statement said.

The negotiations will consider cost viability of the project, economical financing from the French side, collaboration on transfer of technology and cost-effective localisation of manufacturing in India for large and critical components in accord with Government of India’s "Make in India" initiative.

"France acknowledged the need for India to have lifetime guarantee of fuel supply and renewed its commitment to reliable, uninterrupted and continued access to nuclear fuel supply throughout the entire lifetime of the plants, as stated in the 2008 bilateral IGA on nuclear cooperation.

"The two leaders agreed on a roadmap of cooperation to speed up discussions on the Jaitapur Nuclear Power Project in 2016. Their shared aim is to start the implementation of the project in early 2017.

"Both countries reaffirmed their commitment to responsible and sustainable development of civil nuclear energy with highest consideration to safety, security, non-proliferation and environmental protection," it said.

France and India underscored the contribution of nuclear energy to their energy security and to the fight against climate change.

France reaffirmed its strong and long standing support for India’s candidacy to the international export control regimes, particularly to the NSG and welcomed India's decision to ratify the Convention on Supplementary Compensation for Nuclear Damage, the statement said.

Describing his visit as "outstanding and exceptional", Hollande said it was an honour for France and him to be chief guest at the Republic Day.

"I commend the action of Modi at the climate change conference. I am aware Modi had potential reluctance at the COP 21. He wanted the innovation technology for developing countries to be spread. We owe it to, including Modi for what was achieved at the climate conference, the French President added.

Apart from inking IGA for purchase of Rafale jets, the two countries signed 13 agreements cutting across a wide variety of sectors including railways, culture, space, science and technology.


French firms to invest $10 bn in India in next 5 yrs: Sapin

France's Minister for Finance and Public Accounts Michel Sapin today said French companies have been investing billions in India and he expects that they will invest over USD 10 billion in the next five years.

"Over the last five years, French companies invested more than USD 1 billion per year and we estimate that they will continue to invest at least USD 10 billion in next five years," Sapin said at the India-France business session organised by industry body Ficci.

French companies represent 10 per cent of solar capacity installed in India and by 2020-22, they could add additional capacities, he said.

Sapin said France is the third-biggest foreign investor in India with an investment stock of USD 20 billion and there are more than 400 French companies present in India with a consolidated turnover of over USD 20 billion.

"The majority of these investments are meant for the industrial sector. This makes France a major player in Prime Minister Narendra Modi's Make in India programme. This complementarity can also been seen in the context of other programmes of the Indian government," Sapin said.

The minister added that France has directed French Development Agency to earmark 60 per cent of total financial outlay to India.

"The economic presence of France in India goes back to a long time and is very diverse. This expression of interest in India did not wait for Indian GDP to supersede that of China," Sapin said. The agency operates in 70 countries and provides finance for development. In 2014, it committed euro 8.1 billion across the globe for various projects.

He met Finance Minister Arun Jaitley this morning and has invited him to visit France for an annual economic dialogue between the two countries.

"In France, Indian companies are too few in numbers though France is one of the biggest recipients of FDI in the world. I count all French companies in India to act as ambassador for our country and invite their counterparts to discover in France what they are missing," Sapin stressed.

 

  

Top Stories

Comment on this article

  • John, Udupi

    Tue, Jan 26 2016

    Can any bakth explain how the current deal of Rafales is beneficial to India!?. During UPA it was decided that 126 rafales will be acquired with 18 ready imported and rest manufactured in India with technology transfer from France!. The cost was $20 billion!. Now only 36 Rafales are imported with no tech transfer and cost is $12 billion!!!. So what is make in India!? Or is it make in foreign!?. Without knowing these things bakhts as usual are doing NaMo NaMo mantra!

    DisAgree Agree Reply Report Abuse

  • Vincent Rodrigues, Promenade Road,Fraze Town,B'lore 560005

    Tue, Jan 26 2016

    Good deal provided the deal is economical and product is of good quality.

    DisAgree Agree Reply Report Abuse

  • Vantage Point, mangalore

    Tue, Jan 26 2016

    No western power will visit India or any other nation unless it suits their business interest...don't chant too much...Hollande was successful in having billion $ rafael deal ...similar to how they show friendship to some M.E countries where France had billion dollar Rafael deal recently ...Foes become friends...

    DisAgree Agree [1] Reply Report Abuse

  • Ruben Pinto, Australia

    Tue, Jan 26 2016

    9 months back modi went to Paris and it was announced that a deal was struck for 36 of-the shelf rafale jets. Now we get to hear again that a deal has been struck for the same jet. It should read -India is stuck with these french crooks

    DisAgree [1] Agree [2] Reply Report Abuse

  • John, Udupi

    Mon, Jan 25 2016

    'Blind men of Hindustan' - Gen. K. Sundarji (book by former General of India). Applies to current government more than UPA!. Blind bakhts of Hindustan! For you too!. If you have not opened your eyes now, please don't open in future!. For you all NaMo NaMo mantra is superior to any other Mantra!

    DisAgree [3] Agree [5] Reply Report Abuse

  • JJ, mlore

    Mon, Jan 25 2016

    Some months ago Rafale deal seemed as if the fighters were on their way to India. Same as the 15L per head is on its way to India. What a shame in politics. S Swamy.......wake up.

    DisAgree [2] Agree [5] Reply Report Abuse

  • Roshan, Mangaluru

    Mon, Jan 25 2016

    Modi signs READY TO FLY rafale jets from France in 2014, immediately after winning election, throwing aside all defence formalities. In 2016 still they are signing and a photo opportunity. The planes should have formed a squadron already in 2014.

    Maybe in 2018 we may see yet another signing deal and a photo opportunity.

    DisAgree [1] Agree [2] Reply Report Abuse

  • VM, Moodbidri

    Mon, Jan 25 2016

    Now people will understand significance of MODI JI's foreign visits. Presidents, Prime Ministers, Top Bureaucrats, Investors in INDIA to Sign MoU, Deals, Bi-Lateral Agreements etc.. By this Modi Ji only means Business as usual. What our country gets is, Investor friendly environments, Job for Youths, Improved standard of living. etc.

    DisAgree [4] Agree [10] Reply Report Abuse

  • Nithin Poojary, Mangalore

    Mon, Jan 25 2016

    When UPA govt had a proposal to buy Rafael jet fighter plane from France. Mr. Swamy has threaten to file a corruption case against the then govt because under the same budget more advance fighter jet can be purchased from United states and moreover even UPA was hesitant to sign this deal.
    After taking over as PM Modi visited France and confirmed the Rafael jet deal with France.


    Swamy why are you quite??? Forgotten the route to Supreme Court.

    DisAgree [2] Agree [16] Reply Report Abuse

  • indian, india

    Mon, Jan 25 2016

    Nithin Poojary
    so simple congi is so corrupt that RS 1 Cost items will buy for Rs 100. so good that not bought at the time of UPA

    DisAgree [6] Agree [1] Reply Report Abuse

  • Nithin Poojary, Mangalore

    Mon, Jan 25 2016

    You are speaking as if the Price list is changed...Nothing has changed from the previous proposal...Except quantity....Now India is purchasing 36 compare to 126 previous proposal...You bhakts will defend anything which is against Modi & Swamy...

    DisAgree [2] Agree [8] Reply Report Abuse

  • Ren, Dubai

    Mon, Jan 25 2016

    Haahhha…… Signed a MOU without financial details? Is it like 125,000 crores to Bihar and 15 lakhs to each Indian?????

    DisAgree [5] Agree [15] Reply Report Abuse

  • Gangaram, Moodbidri

    Mon, Jan 25 2016

    My question is how many billion dollars are promised by each country and when Modi finish 2 years how much is already invested?? any idea Madhu Mglr??

    until now all are in dreams only....

    DisAgree [4] Agree [12] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Jan 25 2016

    After Bullet Railu now Rafales ...

    DisAgree [10] Agree [10] Reply Report Abuse

  • Rohan, Mumbai

    Mon, Jan 25 2016

    with extra $10 billion investment.........lol

    DisAgree [2] Agree [2] Reply Report Abuse

  • Madhu, Mlre

    Mon, Jan 25 2016

    Well done Modiji.True leader of Hindustan. Achhe din already in India.Pseudos are nervous and didn't feel acche din because of ur right decisions and all Pseudos are fighting hard for their political survive

    DisAgree [19] Agree [13] Reply Report Abuse

  • Rajesh Putran,

    Mon, Jan 25 2016

    Madhu

    Did you got 15 lacs... Lol

    DisAgree [3] Agree [5] Reply Report Abuse


Leave a Comment

Title: Rafale: India, France ink IGA, to sort out 'financial aspects'



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.