The government has cleared the deal with France for 36 Rafale fighter jets which will cost around 7.9 billion Euros and will be signed on Friday.
The first fighter jet deal in 20 years will be sign in the presence of French Defence Minister Jean Yves Le Drian, who will arrive today by evening along with CEOs of Dassault Aviation, Thales and MBDA and top government officials.
The Rafale fighter jet’s deliveries will start in 36 months and finished in 66 months from the date contract is inked.
The aircraft is equipped with missiles like Meteor and Scalp that will give the IAF a capability that had been sorely missing in its arsenal.
The contract for the deal was already cleared by the Cabinet Committee on Security earlier. The price of the contract was fixed in May, sources said.
The deal for the aircraft comes with a saving of nearly 750 million Euros than the UPA era one, which was scrapped by the Narendra Modi government, besides a 50 per cent offset clause.
This deal also means business worth at least three billion Euros for Indian companies, both big and small, and generating hundreds of jobs in India through offsets.