The Defence Ministry on July 13 approved the proposed procurement of 26 the naval variant of Rafale jets from France, the ministry said.
The approval for the procurement came from the Defence Acquisition Council (DAC) following a meeting held by Defence Minister Rajnath Singh on a day Prime Minister Narendra Modi set out on his two-day Paris visit.
The DAC, which is the defence ministry's highest decision-making body on procurement, also cleared a proposal for the construction of three more Scorpene class submarines in India.
The mega defence projects are expected to be announced after wide-ranging talks between Prime Minister Modi and French President Emmanuel Macron in Paris on Friday.
The DAC's approval for the projects came around a week after they were cleared by the Defence Procurement Board (DPB). The Indian Navy is looking to procure the 26 deck-based fighter jets for the indigenously-built aircraft carrier INS Vikrant.
After a lengthy process, the Navy had narrowed down on Boeing's F/A-18 Super Hornet and French aerospace major Dassault Aviation's Rafale M aircraft. Later, Rafale-M, the naval variant of the jet, emerged as the winner in the race.
India has already procured 36 Rafale jets from France for the Indian Air Force. The Rafale jets are India's first major acquisition of fighter planes in the past 23 years after Sukhoi jets were imported from Russia.
As for the three submarines, they would be acquired under a repeat clause by the Indian Navy as part of Project 75. Under Project 75, six Scorpene submarines have already been made in India. The submarines will be constructed by Mazagon Dock Shipbuilders Limited (MDL).
"The procurement of additional submarines, with higher indigenous content, will not only help in maintaining the required force level and operational readiness of the Indian Navy but also create significant employment opportunities in the domestic sector. It will also help the MDL in further enhancing its capability and expertise in submarine construction," the Defence Ministry said.
Together, the deals are estimated to be worth more than Rs 90,000 crore, media reports suggest. The cost will be finalised after completing contract negotiations once the deal is announced.
"The price and other terms of purchase will be negotiated with the French Government after taking into account all relevant aspects, including comparative procurement price of similar aircraft by other countries. Further, the integration of Indian-designed equipment and establishment of Maintenance, Repair & Operations (MRO) Hub for various systems will be incorporated into the contract documents after due negotiations," the ministry informed.
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