Nexus: Rafal deal

India Says Bye Bye To Rafale, Ministry plans to buy F 18 IN

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Source’s close to Defense ministry confirms that India plans to produce the American F 18 in India with TATA as the indigenous supplier. The proposed sale will be discussed and to be drafted in the upcoming visit of US DOD Chief to India. US major Lockheed proposed the F 16 IN to India, due to the single engine and the Lockheed’s relationship with Pakistan forced the IAF keep out Lockheed’s offer.

On the other side Boeing has made good relationship with India, recent signatures of AH 64 and CH 47, and Boeing’s MoU with TATA also good example for that. F 18 IN is the advanced variant of F 18 E/F version, IN version has larger Indian sub components, also allows to carry Indian and Israeli made weapons.

There is no information about how many numbers of F 18 could be produced in India, however there is no delays in the new procurement like earlier, The new DDP allows faster negotiations and contract agreements. Also there is no details mentioned in the earlier signe MoU of 36 Rafale acquisition program with France.

Many feasible options in the F 18, F 18 engines can be used in desi Tejas and the upcoming AMCA. the need of F414 engine numbers may cross over 3000 for the next twenty years, and GE already signed a contract with an Indian company to produce those engines in India,

F 18 also certified to be operated from aircraft carriers, which can be used in upcoming IAC 2 carrier, as one more the F 18’s master piece variant EA 18 G also a good choice for dedicated jamming. the air force’s long time dream of operating dedicated special squadron after retiring the MiG25

F 18 E/F one of the newest bird in the US Navy and air force based on the legendary F 18 hornet. which was introduced in the USAF in 2000. as of now Royal Australian force is the only export customer who use both E/F and G version of F 18.

The F 18 can be used in multiple missions, same like Rafale. the F 18 carry more variety of ammunition and more number of weapons than the Rafale. whose range is quite lower than the Rafale when comes to comparison. The new F 18 also comes with advanced modern AESA radar AN/APG 79 made by Raytheon.

The IN version comes with eleven hard points which allows the aircraft to carry more number of air to air, air to ground and air to ship munitions, Modern missiles like AIM 120 D, JDAM and Harpoon also can be used from the Indian Hornet.

The Hornet’s are costs less than the Rafale in all aspects, which include weapons and acquisitions. However Rafale leads in less operating and maintenance cost. As like other US fighter jets, The F 18 too have modern avionics, electronic warfare and jamming suites. which include towed decoy’s.

Buying both F 18 and Rafale makes the IAF once again in the logistics nightmare, maintaining both Rafale and F 18 is so hard since Pilots need to be trained in different platforms and also there is no option of interoperability. Less number of Pilots in the IAF also a issue operating both Rafale and F 18. ammo nightmare is also a problem. since F 18 can be support Indian and Israeli weapons, but not the french one. Especially on the air to air missiles.

It’s the IAF who can send a formal proposal for the eligible aircraft, However it’s the ministry who decide which one need to be bought.

Source:- sajeevpearlj

The post Bye Bye Rafale, Ministry plans to buy F 18 IN appeared first on Defence Update.

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Japan-Qatar Ties Help Fund Rafale Order

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PARIS — Japanese banks drew on close commercial ties to Qatar when they lent funds that helped Doha pay last year’s down payment for Rafale fighter jets and missiles worth €6.3 billion ($6.8 billion), financial specialists said.

A bank loan to Qatar, a nation rich in oil and gas reserves, signaled an economic shift for the Arabian Gulf nation and its strong business ties to Japanese lenders and construction companies.

“Qatar can borrow relatively cheaply on the international bank market as there is huge collateral with the Qatar sovereign fund,” said Stéphane Audrand of the consultancy Sylmaris. There is also long-term collateral with Qatar’s export energy contracts.

The sovereign fund is valued at $256 billion, according to the Sovereign Wealth Fund Institute, which specializes in institutional investors.

"The relations between Qatar and Japan are unique, focused on construction and LNG," said Sash Tusa, analyst with equity research firm Agency Partners.

The two countries have shared interests, with Japanese companies working on construction projects for the 2022 World Cup soccer tournament in Qatar, which supplies liquefied natural gas to Japan, he said.

Qatar paid the deposit for the Rafale deal Dec. 16, finally putting into effect contracts signed eight months earlier on May 4. A down payment is usually 15 percent of the total amount.

The order included 24 Dassault Aviation fighters and 12 options, and guided weapons from MBDA and Safran’s Sagem. The French Air Force will also train Qatari pilots and maintenance personnel.

Japanese banks lent Doha funds for the down payment, said a French executive and a financial specialist who declined to be identified.

Qatar expects its economy this year to fall into a $12.8 billion budgetary deficit, representing 6 percent of gross domestic product, according to the CIA World Factbook. “Low oil prices have dampened the outlook,” the report said.

That budgetary upset comes after several years of strong growth, which delivered an estimated 2015 average income of $145,000, the world’s highest average income, according to the report. Japan is Qatar’s leading trade partner, accounting for 25.3 percent of exports, followed by South Korea's 18.8 percent and India's 12.7 percent.

The Qatari bank loan reflects a steep fall in oil prices. The benchmark Brent crude oil hit a 12-year low of $27.10 on Jan. 20, Reuters reported. The oil price has since risen but that firmer path was partly due to talks by energy producers to freeze production in a bid to prop up prices.

Japanese banks have major business interests in Qatar, which is building transportation and infrastructure projects for the World Cup.

A consortium led by Mitsubishi Heavy Industries won an order estimated at some ¥400 billion (US $61.5 billion) to build a subway in time for the soccer tournament, Japan Times reported Feb. 21. Consortium partner Thales will supply the signaling system, while Hitachi will handle train maintenance.

Last year, Thales also won a security contract for Qatar Hamad port, a large commercial facility which will also be the site for a naval base.

In early January, Qatar closed a $5.5 billion syndicated loan, arranged by six banks including three Japanese lead lenders: Bank of Tokyo-Mitsubishi UFJ, Mizuho, and Sumitomo Mitsubishi Banking Corp, Reuters reported. Qatar National Bank, Deutsche Bank and Barclays helped arrange the five-year loan, expected to carry a margin of 90 basis points over London Interbank Offered Rate.

A basis point is 1/100 of a percentage point.

Qatar had previously hoped to raise $10 billion with a smaller margin of some 80 basis points, International Financing Review reported.

“The expected slowdown in the Qatari economy is likely to be seen as short-term risk, unlikely to deter Japanese bank lenders, which hold large amounts of cash and are looking for borrowers,” Audrand said.

The Japanese banks can offer low-cost financing as they draw on ample funds, with the Bank of Japan injecting cash in a quantitative easing policy in a bid to boost the sagging economy.

Japanese banks have shown some public concern on lending on weapons, as indicated in a ban by Bank of Tokyo-Mitsubishi UFJ on lending to builders of cluster bombs, but there is greater pressure on European lenders.

“European banks are under tight regulatory control on credit risk and deeper scrutiny under corporate social responsibility,” Audrand said.

That may have made it hard for French banks to lend to Qatar for the Rafale as there is geopolitical risk, with tension rising with Iran and the Islamic State, he said.

US banks were unlikely to have funded the Qatari order as that would likely displease Boeing, a competitor to Dassault in the fighter market, the financial specialist said.

Qatar seeks acquisition of 73 F-15E Strike Eagle fighters, with 36 in a first tranche, US Senate Foreign Relations Chairman Bob Corker has said. The White House is expected to decide soon whether that deal will go ahead, as the Defense and State Department support for the request.

Doha announced in June a planned order for four Boeing C-17 transports.

Qatar is seen as a large arms market, announcing in 2014 a plan to buy two Airbus A330 multirole tanker transport aircraft and 22 NH90 helicopters.

France hopes to sell a planned DCNS air defense frigate, while Nexter has pitched the Véhicule Blindé de Combat d'Infanterie (VBCI), an infantry fighting vehicle, to Qatar, which is reportedly looking for 200 to 600 units.

The Qatari deal with France includes MBDA Mica air-to-air and Meteor long-range, air-to-air missiles, Scalp cruise missiles, and Sagem's armement air-sol modulaire (AASM), a powered smart bomb, French defense officials said.

Islamic State forces are active in the Middle East and there is also rising tension with Iran, which is close to Russia. Moscow has authorized delivery to Teheran S-300 surface-to-air missiles in a deal reported to be worth $800 million and which previously had been suspended.

France Reproposes ‘Attractive’ Rafale Deal For India

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In a bid to break the ongoing impasse on the Rafale fighter jet deal, a high-level delegation of Indian and French officials met in the South Block on Wednesday afternoon. The Price Negotiation Committee formed to work out modalities on the 36 Rafale warplanes has not been able to conclude its task as it has not been able to strike a compromise.
Thirty-six nuclear-capable Rafale jets will be delivered to India in fly-away condition, fitted with weapon systems, such as array radar, high end beyond-visual-range missiles and defensive weapon systems. The deal will also include a support and maintenance package with the manufacturer, Dassault. The Indo-French High Committee on defence cooperation meeting scheduled for March 9, 10 was chaired by the Defence Secretary G Mohan Kumar. Defence industry, procurement and research technology were the areas that were focussed. The status of several defence deals between the two nations was also discussed, including the Rafale jet and Short Range Surface to Air Missile joint development.
“During the meeting, it was believed that French authorities gave a fresh proposal with amendments to make the Rafale deal more attractive. The Indian side is examining the proposal,” an officer said. According to a top Defence Ministry official privy to the development, India is targeting a cost between `65-68,000 crore (8 billion Euros) for 36 Rafale fighter jets. However, on the other side, Dassault, which manufactures the aircraft has quoted a whopping figure of the nearly 90,000 crore (12 billion Euros).
As a compromise was not reached, the deal could not be inked during French President Hollande’s visit to New Delhi last month during Republic Day celebrations. It only dashed the hopes of the IAF, which is struggling to cope with its depleting fleet strength, but also caused embarrassment to New Delhi as no major announcement was made during the meeting of the top political leadership of both countries. In a joint statement on 25 January, Prime Minister Narendra Modi and French President Hollande had hoped to sort out the financial aspects in ‘couple of days’. Even Dassault Aviation had said it expected a complete agreement in four weeks.

Nexus

India Says Bye Bye To Rafale, Ministry plans to buy F 18 IN

Japan-Qatar Ties Help Fund Rafale Order

France Reproposes ‘Attractive’ Rafale Deal For India

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