By Bharat karnad
17th April 2015
With the price negotiations meandering into the fourth year, an impatient Narendra Modi intervened, circumventing the elaborate Request for Proposal (RFP) system of competitive bidding under which the medium multi-role combat aircraft (MMRCA) deal was initiated. The prime minister decided to purchase the Rafales “off the shelf” without transfer of technology at the government-to-government (G2G) level.
This was portrayed as Modi’s “out of the box” solution for a problem that didn’t really exist. Plainly, he mistook the hard, extended, bargaining between the two sides as evidence of red tape, and cutting it as his unique achievement. But impatience is a liability in international relations and can cost the country plenty.
Rather than pressuring French president Francois Hollande and the French aviation major, Dassault, which is in dire straits and was in no position to resist sustained Indian pressure to deliver the Rafale and the technologies involved in toto to India, Modi eased off, promising a munificent $5billion-$8 billion for 36 Rafales off the shelf minus any reference to the L1 (lowest cost) MMRCA tender offer, possibly a buy of another 30 of them, and no onerous technology transfer obligation.
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