Suspense over Rafale fighter jet deal before PM Modi's visit to France

Suspense continued on Tuesday over whether the issue of Rafale fighter deal, which has been stuck over cost, will figure in talks that Prime Minister Narendra Modi will have with French President Francois Hollande during his visit beginning on Thursday.

French Ambassador Francois Richier, while addressing a press conference here on Modi's visit, was evasive to questions over the multi-billion dollar deal which has been held up for long.

However, sources said "negotiations are on" for the deal under which French company Dassault Aviation will supply 126 Rafale fighter planes.

Richier said French companies, including those in the field of defence, are keen to participate in the 'Make in India' programme and the fate of Rafale deal will be a key element in this.

Rafale was selected by India from among five bidders in 2012 since it was the lowest bidder.

Indian government officials say that while the deal was initially for about Rs 42,000 crore, French are seeking a higher price now. This, the Indian officials say, has put the price at a "little more than double the cost".

India is insisting that Dassault Aviation cannot renege on the Request for Proposal (RFP) clauses, which it had initially agreed to.

Even at political level, India has categorically told the French side that it must stick to the RFP, in which Dassault was the lowest bidder and hence was selected for the contract.

"The ball is in France's court," an Indian official had said sometime back.