Both the sides also agreed to conclude an Inter-Governmental Agreement (IGA) for supply of the aircraft.
A Negotiating Team has been constituted to negotiate the terms and conditions of the procurement of 36 Rafale jets and recommend a draft agreement. The meetings of the Indian Negotiations Team with the French side are underway.
Ministry of Law & Justice have made certain observations and the same will be adequately taken into account while finalizing the IGA, which is still under negotiations.
(EDITOR’S NOTE: According to Indian media reports, the Law Ministry’s last-minute objections are centered on the liability provisions of the deal. The ministry wants to involve the French government in any future liability dispute, and holds that current liability provisions are unfavorable to India.
Differences of views over contractor liability sank the original, 126-aircraft deal, and could yet sink this smaller deal.
“Parrikar also clarified that the negotiations on the terms and conditions of the contract, including total cost, actual delivery time lines and guarantee period, have not been concluded,” the Indian Express reported May 3.).
-ends-
from Defense Aerospace - Press releases http://ift.tt/26SZdTU
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