SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG
The Indian Air Force’s (IAF) ambition to bolster its fleet through the Multi-Role Fighter Aircraft (MRFA) tender might see a significant increase in costs due to Dassault Aviation’s transition to the Rafale F4 configuration. A Ministry of Defence (MoD) official has hinted to idrw.org that the capital cost for procuring 110 Rafale jets could rise substantially if the IAF opts for this advanced variant with technology transfer (ToT).
The benchmark for this projection can be traced back to the UAE’s deal for 80 Rafale jets, which was valued at $16 billion. Adjusting for a 5% annual inflation rate over the last four years, this equates to approximately $17.6 billion in today’s terms. However, India’s plan to acquire 110 jets, coupled with the costs associated with ToT, suggests a potential price tag nearing $27 billion.
Currently, the MoD has allocated a budget of $20 billion for the MRFA program, yet the project has not received the Acceptance of Necessity (AoN), meaning the finance ministry has not yet cleared the financial aspect of the deal. The transition to the Rafale F4, which includes enhancements like the Thales Scorpion Helmet Mounted Display, MBDA’s MICA NG missile, and improved satellite communications, alongside the complexities of local production and technology transfer, is likely to push the expenses beyond the envisaged $20 billion.
The MoD official emphasized the strategic necessity of these upgrades for India’s defence posture, particularly in light of regional security dynamics. However, the financial implications are clear: the MRFA tender, already facing delays, might see its costs balloon past the $27 billion mark, challenging the government’s fiscal planning and defence allocations.
As the Indian government navigates these financial waters, the decision on whether to proceed with the Rafale F4 or consider alternative aircraft will be crucial. The balance between capability enhancement and budgetary constraints will dictate the future of India’s air combat potential, possibly leading to negotiations for cost-sharing, phased payments, or even revisiting the scale of the acquisition.
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