India picks French Rafale jet in $12bn deal

India picks French Rafale jet in $12bn deal


France's Dassault selected as preferred bidder for 126 planes, after Eurofighter consortium bid knocked out of running.

Last Modified: 31 Jan 2012 17:11


Dassault is set to sign a contract with India for 126 of its Rafale jets, after other bids were ruled out [GALLO/GETTY]

India has selected the French firm Dassault over the Eurofighter consortium as the preferred bidder for 126 fighter jets in a major contract estimated to be worth $12bn.

Dassault won the right to enter into exclusive negotiations with India after lodging a lower bid than its European rival in the world's biggest single defence deal currently in process, an Indian government source told the AFP news agency on Tuesday.

Dassault, whose Rafale fighter had been pitted against the Eurofighter Typhoon, said it was "honoured and grateful" to be selected and stressed its commitment to meeting the "operational requirements" of the Indian air force.

The French government welcomed the news, but added that the final contract had yet to be signed.

"At this stage - and I want to be cautious - we are in a phase of exclusive negotiations," Pierre Lellouche, the French minister for foreign trade, told France's BFM radio.

Lellouche declined to release financial details of Dassault's bid.

Dassault's shares soared more than 20 per cent on the Paris stock exchange after the news broke.

The contract has been fiercely fought over for four years.

In April, India pulled a surprise by cutting out US bidders Boeing and Lockheed Martin - much to Washington's disappointment - as well as dropping Sweden's Saab AB and the Russian makers of the MiG 35 from the race.

That left Dassault and Eurofighter - a consortium of Britain's BAE Systems, Italy's Finmeccanica and the European Aeronautic Defence and Space Company (EADS).

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http://www.aljazeera.com/news/asia/2012/01/2012131153832917968.html

Editor's note:  Indians: Next time you have problems with the Paks, don't call your Uncle Sam...call a Frog.  Lucius Verenus, Schoolmaster,  ProbateSharks.com