The price of per Rafale jet that the government agreed to pay in 2016 for a deal of 36 fighters is 40 percent higher than what was offered by Dassault to provide 126 medium multi-role combat aircraft (MMRCA) back in 2012, reported Business Standard, citing sources.

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According to the report, two senior defence ministry officials who were part of the negotiations, stated that Dassault’s winning bid amounted to 1,950 crore euros for 126 Rafale fighters back in 2012. This included the cost of fighters, technology transfer, indigenization, India-specific enhancements, weaponry, spares and maintenance guarantees.

This in turn meant that the average cost for a single jet was 155 million euros. When compared to the exchange rates at that time, this would amount to Rs 1000 crore per aircraft, the report said.

However, compared to this, the present deal signed in 2016 reveals a steep rise in the price. Each of the 36 Rafale fighters now cost 217 million euros, the report said.

The revelation is important as key officials in India including Defence Minister Nirmala Sitharaman and Finance Minister Arun Jaitley had claimed that in the new contract the price of the jet has fallen by 20 percent, the report added.

First Published:Nov 9, 2018 11:19 AM IST