New Delhi: The Indian Air Force (IAF), the Centre has scrapped the $20 billion Medium Multi-Role Combat Aircraft (MMRCA) deal for purchase of 126 Rafale fighter jets which was negotiated by the previous United Progressive Alliance government. Speaking to CNN-IBN, Defence Minister Manohar Parrikar claimed that Rafale fighters cannot replace the ageing MiG-21 which will be phased out in the next 6-10 years.
Parrikar said that India’s indigenous Light Combat aircraft Tejas will replace MiG 21 as both are almost of the same category while the Rafale is a much bigger jet with a longer range and more weapons carrying capabilities. “We have not purchased any new aircraft of latest technology in the past 15 years. IAF desperately needs fourth generation aircraft, the fifth generation that we are working on will take 10-15 years,” said Parrikar.
Prime Minister Narendra Modi during his recent visit to France negotiated with the government there to buy 36 Rafale fighter jets in fly-away condition under a new deal. After meeting French President Francois Hollande in Paris on April 11, Modi announced that IAF would get 36 Rafale jets.

“I think it is a bold decision and I will give 100 out of 100 to the Prime Minister. Many people politically fail to take decision. But the need of the nation comes first. What Modiji has done is that he has got a deal for 36 aircraft. We will negotiate and will buy more. The ice has been broken,” he said.
“We are phasing out MiG-21. Rafale is not a replacement for MiG. It satisfies the upper end. IAF needs aircraft with capacity of 1000 kms radius. It is a strategic purchase. The earlier government should have taken decisions on government to government deals,” added Parrikar.
While pointing out that IAF needs new fighters within a short time frame and so the government to government deal to buy 36 Rafale jets was finalised.
“We have not purchased all 36 aircraft. When there is a PM or President level deal, it is matter of principle clearance. We have promised to purchase 36 aircraft. The major reason for the deal is to induct it in the minimum time frame. It is a good deal,” he said.
“Make in India part of the deal will be discussed between ministries. Rafale is a top end fighter and satisfies other criterion as well. The aircraft is expensive and hence we have to take steps. The deal for 126 jets would have cost Rs 90,000 crore. Rafale cannot replace MiG-21, Tejas can do that. We won’t induct any low end aircraft. Tejas is a lighter aircraft, it has its limitations. It cannot loiter for hours. Its carrying capacity is only 10-12 tonnes whereas Rafale can carry 24 tonnes,” he said.
Subramaniam Swamy unhappy with deal
On charges made by senior Bharatiya Janata Party (BJP) leader Subramanian Swamy that the Rafale deal is not in India’s interest, the Defence Minister said that he will explain to his colleague the entire scenario and that Swamy’s reaction was based on instant news.
But Swamy termed the new Rafale fighter jet deal between India and France a case of arbitrariness. Swamy is yet to decide on what action to take over Modi government’s decision to purchase 36 aircraft from France.
Swamy said, “I have not yet decided on whether to approach the court. I am waiting for papers on the new Rafael deal. It prima facie appears to be a case of arbitrariness.” Swamy requested Modi not to go ahead with the Rafale deal, which was negotiated by the previous UPA government, and said the performance of the French jet “turned out to be worst of all the aircraft” in Libya and Egypt.
IAF had shortlisted the Rafale fighter under the MMRCA deal after a close competition which also saw Eurofighter Typhoon, Boeing F/A-18E/F Super Hornet, Lockheed Martin F-16 Fighting Falcon, Mikoyan MiG-35 and Saab JAS 39 Gripen in the race. While Boeing F/A-18E/F Super Hornet, Lockheed Martin F-16 Fighting Falcon, Mikoyan MiG-35 and Saab JAS 39 Gripen were eliminated very early, Dassault Rafale edged out the Eurofighter Typhoon in the final negotiation.
At present the IAf has just 34 fighter squadrons against the ideal 46 squadrons required to take on the threat from both Pakistan and China simultaneously. The ageing MiG-21 and MiG-27 planes are being phased out which will see the IAF strength depleting by at least eight more squadrons.
Under the MMRCA deal, India was to get only 18 Rafale directly while the rest 108 fighters were to be manufactured by state-owned Hindustan Aeronautics Limited. But the final deal between India and France was stuck over who would be responsible for the manufacturers’ guarantee on 108 jets which were to be built HAL. India wanted Rafale maker Dassault Aviation to take full responsibility which the latter had not agreed to.
What the deal means to the IAF and India
Earlier, Rafale had been chosen as the Medium Multi-Role Combat Aircraft (MMRCA) for the IAF after a stringent technical evaluation and global tender process which lasted a decade. That tender proposed the purchase of 18 Rafale aircraft in “fly-away” condition, and 108 to be made operational by Hindustan Aeronautics Limited under a transfer of technology clause.
The ostensible reason for India starting a separate process, away from the 126 aircraft deal, is to urgently meet the “critical operational necessity” of the IAF.
Dr Iskander Rehman, Paris-based non-resident Fellow in the South Asia Programme at the Atlantic Council says, “I can only imagine the collective sighs of relief at this announcement, not only among the French employees of Dassault, but also within the IAF, which has repeatedly expressed its concern over the steady haemorrhaging of the Indian air fleet. This acquisition couldn’t have been more pressing in nature.”
The bold political call taken by the Indian government is also a reflection of the frustration on both sides at how bogged down the deal has got in terms of procedures and pricing negotiations. As it is a government-to-government deal, India should be able to get these aircraft cheaper. The negotiations over price are still on but experts estimate at least a 10% lower price for these 36 aircraft. With limited funds available for capital acquisition in the defence budget, monetary considerations are an important factor in any major Indian procurement.
The announcement, however, doesn’t talk about making Rafale in Hindustan Aeronautics Ltd (HAL), a core proposition of the original tender. This multi-billion dollar procurement thus runs contrary to Prime Minister Narendra Modi’s Make in India plan for the defence sector.
This has led to whispers of some other high-end defence technology transfers from France as a quid pro quo for this deal. One such technology being spoken about is the reactor for the Ship Submersible Ballistic Nuclear (SSBN)Submarine. India is currently in the process of making its first indigenous nuclear submarine, the Arihant. A nuclear submarine is seen as the best guarantor for a second strike capability in case of a nuclear conflict because it can stay underwater for longer periods than a diesel submarine, which needs to come to the surface for oxygen intake.
Speculation aside, there are doubts that France will part with such technology.”India badly needs help perfecting its SSBN reactors, but something tells me that that technology is way too sensitive for the French to part with it, even if India tries to strong arm them over the Rafale deal,” a French military analyst told The Indian Express.
Air Vice Marshal Manmohan Bahadur (retd), Distinguished Fellow at the Centre for Air Power Studies suggests a way in which the current deal could help the Make in India programme in the defence sector. The Maintenance Transfer of Technology (MTOT) for these 36 Rafale fighters should go to a private vendor instead of HAL. The DPP (2013 revised) clearly specifies that nomination of DPSUs like HAL for MTOT can be done away with and the contract given to a private vendor.
“We have so far not leveraged the MTOTs. If we give the Rafale MTOT to a private player, positive spin-offs will happen as it will expose that vendor to R&D and modern technology,” AVM Bahadur said.