Rafale: India, France ink IGA, to sort out 'financial aspects'

January 25, 2016

New Delhi, Jan 25: India and France today inked an Inter-Governmental Agreement (IGA) on the sale of 36 French fighter jets, Rafale, but were unable to sign the final deal due to some "financial" aspects, which are expected to be sorted out in "couple of days".modi

This agreement was among the 14 pacts signed between the two countries after extensive talks between Prime Minister Narendra Modi and visiting French President Francois Hollande which focused ways to enhance cooperation in counter- terrorism, security and civil nuclear energy.

"...Leaving out financial aspect, India and France have signed Inter-Governmental Agreement on purchase of 36 Rafale fighter jets. We expect that even the financial aspects pertaining to purchase of Rafale jets will be resolved as soon as possible," Modi said at a joint press event with Hollande.

Terming the signing of the IGA as a "decisive" step, the French President said there are some financial issues that will be sorted out in "couple of days".

The two countries are in negotiations for 36 Rafale fighter jets in fly away conditions since the announcement for the deal was made by Modi in April during his visit to France.

However, the final deal is yet to be sealed as both sides are still negotiating the price which is estimated to be about Rs 60,000 crore. A high-level team from France is here and carrying out last minute negotiations.

Apart from defence cooperation, the talks between the two leaders primarily focused on ways to boost counter-terrorism cooperation in the aftermath of attack in Paris in November last and Pathankot terror strikes earlier this month.

"From Paris to Pathankot, we saw the gruesome face of the common challenge of terrorism...I also commend the strength of your resolve and action these terrorist attacks. President Hollande and I have agreed to scale up the range of our counter-terrorism cooperation in a manner that helps us to tangibly mitigate and reduce the threat of extremism and terrorism to our societies.

"We are also of the view that the global community needs to act decisively against those who provide safe havens to terrorists, who nurture them through finances, training and infrastructure support," Modi said.

The two countries reiterated their call for Pakistan to bring to justice their perpetrators and the perpetrators of the November 2008 terrorist attacks in Mumbai, which also caused the demise of two French citizens, and to ensure that such attacks do not recur in the future, a joint statement issued after the talks said.

"Daesh has attacked us. The ISIS is provoking us but we are determined to take the right decision. We will strike them time and again those who kill our children. I would like to thank you for the support in dire circumstances. France will never forget. We have decided to strengthen our cooperation against terror," Hollande said.

The two sides resolved to step up their joint effort to counter violent extremism and radicalisation, disrupt recruitment, terrorist movements and flow of Foreign Terrorist Fighters, stop sources of terrorist financing, dismantle terrorist infrastructure and prevent supply of arms to terrorists.

"To this end, they committed to further develop exchanges in the fields of intelligence, finance, justice and police. They welcomed the strengthening of the cooperation between Indian and French counter terrorism authorities and units, in particular between their cybersecurity experts," the joint statement said.

Stressing that terrorism cannot be justified under any circumstance, regardless of its motivation, wherever and by whomsoever it is committed, Modi and Hollande pitched for decisive actions to be taken against Lashkar-e-Tayibba (LeT), Jaish-e-Mohammad (JeM), Hizb-ul-Mujahideen, Haqqani Network and other terrorist groups such as Al Qaeda.

They also condemned the recent terror attacks in Pathankot and Gurdaspur in India.

On other issues which were discussed, Modi said, "From smart cities, locomotives, railway tracks and nuclear power. These are all foundations for building a new commercial partnership."

On his part, Hollande asserted that "There is no better trust than sharing civil nuclear technology" and hoped that the issues pertaining to the six reactors at Jaitapur nuclear plant will be settled in one year.

In pursuance of the 2008 civil nuclear pact, the two leaders encouraged their industrial companies to conclude techno-commercial negotiations by the end of 2016 for the construction of six nuclear power reactor units at Jaitapur the statement said.

The negotiations will consider cost viability of the project, economical financing from the French side, collaboration on transfer of technology and cost-effective localisation of manufacturing in India for large and critical components in accord with Government of India’s "Make in India" initiative.

"France acknowledged the need for India to have lifetime guarantee of fuel supply and renewed its commitment to reliable, uninterrupted and continued access to nuclear fuel supply throughout the entire lifetime of the plants, as stated in the 2008 bilateral IGA on nuclear cooperation.

"The two leaders agreed on a roadmap of cooperation to speed up discussions on the Jaitapur Nuclear Power Project in 2016. Their shared aim is to start the implementation of the project in early 2017.

"Both countries reaffirmed their commitment to responsible and sustainable development of civil nuclear energy with highest consideration to safety, security, non-proliferation and environmental protection," it said.

France and India underscored the contribution of nuclear energy to their energy security and to the fight against climate change.

France reaffirmed its strong and long standing support for India’s candidacy to the international export control regimes, particularly to the NSG and welcomed India's decision to ratify the Convention on Supplementary Compensation for Nuclear Damage, the statement said.

Describing his visit as "outstanding and exceptional", Hollande said it was an honour for France and him to be chief guest at the Republic Day.

"I commend the action of Modi at the climate change conference. I am aware Modi had potential reluctance at the COP 21. He wanted the innovation technology for developing countries to be spread. We owe it to, including Modi for what was achieved at the climate conference, the French President added.

Apart from inking IGA for purchase of Rafale jets, the two countries signed 13 agreements cutting across a wide variety of sectors including railways, culture, space, science and technology.

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News Network
July 12,2020

New Delhi, Jul 12: With the highest single-day spike of 28,637 new cases and 551 deaths being reported in the last 24 hours, India's COVID-19 count reached 8,49,553 on Sunday.

According to the Union Health and Family Welfare Ministry, this includes 2,92,258 active cases, and 5,34,621 cured and discharged or migrated patients. The toll due to the disease has reached 22,674 in the country.

Maharashtra with 2,46,600 cases continues to be the worst affected state by COVID-19 in the country. The state has 99,499 active cases while 1,36,985 patients have been cured and discharged so far. The death toll due to the disease now stands at 10,116.

Tamil Nadu with 1,34,226 cases, including 46,413 active ones, is the next worst affected in the country. While the number of cured and discharged patients is at 85,915 in the state, the toll due to the disease is at 1,898.

The national capital has recorded 1,10,921 confirmed cases so far. However, the number of active cases in Delhi is at 19,895 and 87,692 patients have been cured and discharged so far. With 3,334 deaths being reported due to COVID-19 in the city. 

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News Network
May 4,2020

New Delhi, May 4: The country's manufacturing sector activity witnessed unprecedented contraction in April amid national lockdown restrictions, following which new business orders collapsed at a record pace and firms sharply reduced their staff numbers, a monthly survey said on Monday.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.
The index slipped into contraction mode, after remaining in the growth territory for 32 consecutive months.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Amid widespread business closures, demand conditions were severely hampered in April. New orders fell for the first time in two-and-a-half years and at the sharpest rate in the survey's history, far outpacing that seen during the global financial crisis, the survey said.

"After making it through March relatively unscathed, the Indian manufacturing sector felt the full force of the coronavirus pandemic in April," said Eliot Kerr, Economist at IHS Markit.
Panellists attributed lower production to temporary factory closures that were triggered by restrictive measures to limit the spread of COVID-19.

Export orders also witnessed a sharp decline. Following the first reduction since October 2017 during March, foreign sales fell at a quicker rate in April. "In fact, the rate of decline accelerated to the fastest since the series began over 15 years ago," the survey said.

On the employment front, deteriorating demand conditions saw manufacturers drastically cut back staff numbers in April. The reduction in employment was the quickest in the survey's history.

"In the latest survey period, record contractions in output, new orders and employment pointed to a severe deterioration in demand conditions.
“Meanwhile, there was evidence of unprecedented supply-side disruption, with input delivery times lengthening to the greatest extent since data collection began in March 2005," Kerr said.

On the prices front, both input costs and output prices were lowered markedly as suppliers and manufacturers themselves offered discounts in an attempt to secure orders.

Going ahead, sentiment regarding the 12-month outlook for production ticked up from March's recent low on hopes that demand will rebound once the COVID-19 threat has diminished and lockdown restrictions eased.

"There was a hint of positivity when looking at firms' 12-month outlooks, with sentiment towards future activity rebounding from March's record low. That said, the degree of optimism remained well below the historical average," Kerr said.

In India, the death toll due to COVID-19 rose to 1,373 and the number of cases climbed to 42,533 as on Monday, according to the health ministry.

Meanwhile, the coronavirus-induced lockdown has been extended beyond May 4, for another two weeks in the country.

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Agencies
May 27,2020

New Delhi, May 27: The government has further extended the deadline for bidding to buy its entire 52.98 per cent stake in the country's second-biggest oil refiner, Bharat Petroleum Corp Ltd (BPCL), by over one-and-a-half months to July 31.

This is the second extension for submission of expression of interest (EoI) for BPCL stake by interested bidders. The government had first invited bids showing interest in buying its stake, by May 2. It was then extended till June 13.

This has now been extended to 5 p.m. on July 31 in "view of further requests received from the interested bidders and the prevailing situation arising out of COVID-19", an official notice put up by disinvestment department DIPAM late on Tuesday said.

Accordingly, the last date for submission of written queries or preliminary information memorandum has been pushed back to June 23 from the earlier deadline of May 16.

The disinvestment in BPCL involves the government selling its entire 52.98 per cent stake in the company to a strategic investor with transfer of management control. The government has barred PSUs from bidding for BPCL and expects private sector Indian players and global MNCs to bid for its stake. The government's stake in BPCL is worth around Rs 50,000 crore.

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