Indo-French Rafale Fighter Deal Deadlocked Over Price: No Deadline For Negotiations

The Indo-French negotiations for buying 36 Rafale have again hit a deadlock over the issue of price with Indian Defense Minister saying that there would be no deal until the price was right.

"The price is the problem that needs to be resolved as long as I do not get the right price, I cannot sign, but we resolved the other issues in terms of safeguards; procurement and manufacturing methods " Defense Minister Manohar Parrikar said on India Today news channel Thursday.

France and India have reached an interim agreement on the acquisition of 36 Rafale during the visit of French President Francois Hollande in India, but without agreement on the financial arrangements.

"I cannot hurry on the price as I am not satisfied," said the Indian minister.

There is a wide gulf between the two sides. “The difference between what France is demanding and what India is willing to pay is too large to bridge easily about 25 per cent,” Business Standard news daily reported quoting defence ministry sources that are close to the negotiation as saying.

"We need to meet the people involved, the exercise continues, I would say, for a few months," Parrikar said before adding "do not want to set a deadline for the negotiations on the price."

He also assured that the two parties agreed on the fact that 50% of the contract amount will be invested on Indian soil.

The amount of the contract is estimated at 12 billion euros quoted by France while Indian negotiators are refusing to go beyond 9 billion euros, the news daily reported.