India’s much-awaited purchase of 126 medium multi-role combat aircraft (MMRCA) for the Indian air force from French firm Dassault Aviation will be further delayed as negotiations to calculate the life-cycle cost haven’t been settled and there is no money for any new buys, Defense Minister A. K. Antony says.
“The MMRCA will materialize, [but] it will not be in this financial year [ending March 31],” Antony says. “The negotiations on life-cycle costs are continuing. I hope we will be able to close it [during the] next financial year.”
Here at the opening of India’s 8th DefExpo biennial exposition, Antony acknowledged that most of India’s procurement programs are stalled for the time being.
“We have already spent 92% of our capital budget for 2013-14 fiscal and there is no money this year for new projects. Major procurements are humanly possible only in [the] next financial year,” Antony says.
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India's Rafale contract will not now be signed before the country's elections as most of the current defence budget has now been spent
Cost hikes and disputes over licensed production have further bogged down the deal
Indian Defence Minister A K Antony on 6 February ruled out all chances of inking the deal for 126 Dassault Rafale fighters before national elections - expected by May - due to budgetary constraints.
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