BUREAUCRATIC PARALYSIS HITS RAFALE DEAL

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NEW DELHI — Only two weeks ago India's purchase of 36 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. Procurement officials in the Ministry of Defence (MoD) now are taking "a very cautious approach" in the $8.9 billion deal to buy 36 Rafale fighter jets, said an MoD source.

Early last month, for reasons that are not clear, former director general defense acquisition Smita Nagaraj was involuntarily placed on leave over differences with MoD leaders over Rafale negotiations, said the source.

Procurement officials in MoD are now too scared to clear any files and virtually all new acquisitions are stuck, the MoD source added.

Early this month, MoD officials conducted negotiations on the Rafale deal with French defense officials and it was decided that India for immediate requirements would make an unspecified number of weaponry purchases, including Mica air-to-air missiles, Scalp air-to-ground missiles, the 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.

Dassault chairman Eric Trappier said in an April 13 radio report that he expected a contract could be signed “in the next few days," adding, “I have high hopes this contract could be signed fairly quickly.”

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