Visiting French Defence Minister Jean-Yves Le Drian held talks with his Indian counterpart Manohar Parrikar here on Tuesday in a bid to break the deadlock over negotiations for 126 Rafale fighter aircraft worth over $20 billion.
Though specific details were not forthcoming, Defence Ministry officials indicated that the issue came up for discussion and both sides decided to continue negotiations.
This is the Minister’s second visit in less than two months. Ministry sources added that his visit is also intended to prepare the ground for the visit of Prime Minister Narendra Modi to France in April though they ruled out any connection between the deal and the visit.
At the Aero India show last week, Mr. Parrikar had refused to speak on the deal but said he would ask the Contract Negotiation Committee to submit its report by March to take an early decision.
Dassault Rafale was shortlisted as part of the Medium Multi Role Combat Aircraft (MMRCA) contest in 2012 after thorough evaluation but price negotiations have since been stuck.
The deal stipulates that of the 126 aircraft, 18 aircraft will come in fly away condition from the manufacturer while the remaining aircraft would be built by Hindustan Aeronautics Limited in India under Transfer of Technology.
