DAC Clears Rafale-Scopene Deal Amid PM Modi’s France Visit

Amid Prime Minister Narendra Modi's France trip, the Defense Acquisition Council on Thursday approved the proposal to buy twenty six Rafale fighters and three Scorpene submarines for the Indian Navy.

The deal is likely to be signed between India and France as PM Modi visits France.

The DAC allowed the procurement of 26 Rafale Marine aircraft along with associated ancillary equipment, weapons, simulator, spares, documentation, crew training and logistic support for the Indian Navy from the French Government based on Inter-Governmental Agreement (IGA).

"The price and other terms of purchase will be negotiated with the French Government after taking into account all relevant aspects, including comparative procurement price of similar aircraft by other countries," according to a government press release.

Further, integration of Indian designed equipment and establishment of Maintenance, Repair & Operations (MRO) Hub for various systems will be incorporated into the contract documents after due negotiations.

The DAC also okayed the procurement of three additional Scorpene submarines under Buy (Indian) category which will be constructed by Mazagon Dock Shipbuilders Limited (MDL).

The procurement of additional submarines, with higher indigenous content, will not only help in maintaining required force level and operational readiness of the Indian Navy, but also create significant employment opportunities in the domestic sector. It will also help the MDL in further enhancing its capability and expertise in submarine construction.

In addition, the DAC approved the proposal to lay down guidelines for achieving the desired indigenous content in all categories of capital acquisition cases. It will help in achieving 'Aatmanirbharta' in critical manufacturing technologies and life-cycle sustenance of defence platforms/equipment through indigenous manufacturing.

Prime Minister Narendra Modi today embarked on a two-day visit to France as the guest of honour at the Bastille Day Parade.