NEW DELHI \u2014 Only two weeks ago\u00a0India’s purchase of\u00a036 Dassault Rafael fighters was considered imminent, but the deal has since been all but frozen and the country’s general director of defense acquisition suddenly forced to step aside.\u00a0Procurement officials in the Ministry of Defence (MoD) now are taking “a\u00a0very cautious approach” in the $8.9 billion deal to buy 36 Rafale fighter jets, said an MoD source.<\/p>\n\n\n\n
Early last month, for reasons that are not clear,\u00a0former director general defense acquisition Smita Nagaraj was involuntarily placed on leave over differences with MoD leaders over Rafale negotiations, said the source.<\/p>\n\n\n\n
Procurement officials in MoD are now too scared to clear any files and virtually all new acquisitions are stuck, the MoD source added.<\/p>\n\n\n\n\n\n
Early this month,\u00a0MoD officials conducted negotiations on the Rafale deal with French defense officials and it was decided that India for immediate requirements would make\u00a0an unspecified number of weaponry purchases, including Mica air-to-air missiles, Scalp air-to-ground missiles,\u00a0the Meteor beyond visual range missile and precision guided munitions at a cost of $1 billion. The negotiations also included a maintenance and engineering support agreement for five years at a cost of $500 million.<\/p>\n\n\n\n
Dassault chairman Eric Trappier said in an April 13 radio report that\u00a0he expected a contract could be signed “in the next few days,” adding, “I have high hopes this contract could be signed fairly quickly.”<\/p>\n\n\n\n
Defense Minister Manohar Parrikar informed the parliament May 3 that the\u00a0federal Law Ministry has reviewed\u00a0the Inter-Governmental Agreement (IGA) on the Rafale deal and that the findings would be taken into account when finalizing the IGA on the Rafale deal.<\/p>\n\n\n\n
The\u00a0parliamentary standing committee on defense\u00a0expressed\u00a0displeasure over the fact that the deal has not been completed.<\/p>\n\n\n\n