Dassault Rafale is the Indian Air force MMRCA contract lowest bidder

New Delhi: French Dassault Aviation SA (AM) is close to winning its first order for Rafale aircraft and that too the mother of all fighter aircraft export deals. Dassault Rafale has been declared the lowest price bidder of the much-awaited medium multi-role combat aircraft (MMRCA) deal for $10.4 billion. The value is expected to go up to $ 20 Billion. Dassault has struggled to find foreign buyer for Rafale.

Dassault Aviation SA (AM) commented “Following the announcement of the final selection of the Rafale in the frame of the MMRCA program, Dassault Aviation and its partners are honored and grateful to the Indian Government and the people of India to be given the opportunity to extend their long-lasting cooperation.

Dassault Aviation and its partners reiterate their commitment to meet the operational requirements of the Indian Air Force and underline their pride in contributing to India’s defence for over half a century.”

The President of the French Republic has learned of India’s selection of the Rafale for the acquisition by the Indian Air Force of 126 fighter aircrafts.

French President Nicolas Sarkozy issued a statement “France is pleased with the Indian government’s decision to select the French aircraft to enter into exclusive negotiations with Dassault.

This announcement comes at the end of a very high-level, fair and transparent competition involving two European finalists. The Rafale has been selected thanks to the aircraft’s competitive life-cycle costs, after the April 2011 pre-selection on the basis of its top-level operational performance. The negotiation of the contract will begin very soon and has the full support of the French authorities. It will include important technology transfers guaranteed by the French government. The realisation of the Rafale project will illustrate the depth and scale of the strategic partnership between France and India.”

It’s bid was said to be ‘significantly’ lower than the other fighter, the Eurofighter Typhoon. The MMRCA is India’s biggest single defence deal which will see India purchasing 126 fighters planes for the Indian Air Force.

BAE Systems release said that it has noted that Eurofighter Typhoon has not been assessed as the lowest-priced compliant bidder (L1) by the Indian Ministry of Defence at this stage of the tendering process for supply of its new Medium Multi-Role Combat Aircraft (MMRCA). “We will continue to support the Indian customer and its evaluation process and work with our European partner companies and their respective governments to seek to understand the basis of today’s announcement,” the note said.

India had shortlisted the Rafale and Eurofighter in April 2011, after rejecting bids from U.S. manufacturers Lockheed Martin Corp., Boeing Co., the Swedish Saab AB (SAABB) and the Russian OAO United Aircraft Corp.

According to the Request for Proposal, the winner of the contract will have to supply 18 of the 126 aircraft to the IAF in 36 months from its facilities and the remaining would be produced at HAL facilities in Bangalore.

The representatives of Dassault in New Delhi were informed about the development in morning and further negotiations on price will be held with them in the next 10-15 days.

The contract will be signed only in the next fiscal. Government has in 2007 earmarked Rs 42,000 crore for the deal.