In December 2023, France submitted its response to India’s tender for buying 26 Rafale Marine jets for the Indian Navy’s aircraft carriers – INS Vikrant and INS Vikramaditya

Amid Indian Navy’s negotiations with Dassault Aviation to buy its Rafale Marine Fighter Jets, a report has claimed that the French defence major may be selling the aircraft at twice the price of what it had sold for Indian Air Force.

Indian Air Force had bought the French-made fighter jets in 2016. Now, Indian Navy is in talks to buy its marine version. The reported cost of the deal at ₹$6 billion for 26 aircraft seems nearly double of what IAF paid earlier as the “base price” of 36 Jets, Businessworld web portal said in a report on Thursday (May 30) citing defence experts.

Negotiations between India and France were expected to begin this week, according to reports. Speaking to the news agency ANI, defence industry officials said that the French side would meet with the Indian defence ministry counterparts to begin official negotiations in the fighter jet deal for the Indian Navy under which aircraft would be operated from India’s aircraft carriers.

In December 2023, France submitted its response to India’s tender for buying 26 Rafale Marine jets for the Indian Navy’s aircraft carriers – INS Vikrant and INS Vikramaditya.

Indian government sources told ANI that they would try to complete negotiations with France and sign the agreement by the end of this financial year.

“Experts say that assuming a 25 percent hike in the price of spares, warranties, guarantees, project based requirements that the Navy may have, the numbers do not add up beyond ₹29,000 crore as the base value per Rafale Jet,” said the Businessworld report.

In 2016, the IAF issued an order for the purchase of 36 Rafale aircraft at a base price of $84 million or under Euro 100 million per aircraft. Accordingly, the cost of 36 aircraft came to less than Euro 3.5 Billion but the total contract value was pegged at Euro 8 billion, as it included payments on account of spares, simulators, training and performance-based logistics among other items.

Business Standard cited defence experts as saying that this time, India should be saving on various ancillary costs since, just like in France where the navy and the air force operate the Rafale fighters, India may also follow a similar model as the IAF already has 36 jets.

The maintenance and storage for the Rafale is common in France. Businessworld report said that similarly if India decides to go in for common maintenance and stores, the cost of the overall contract can come down.

The IAF has set up two Rafale squadrons which have their stores and simulators, and thus, training facilities have already been set up, including the simulator.