IAF's 36 Rafale aircraft cost 40% more than Dassault's earlier offer

The first of a three-part series compares the Euro 7.85-billion deal to purchase 36 Rafale fighters with the aborted tender for 126 Rafale jets

The price per Rafale aircraft that the government agreed in 2016 with French company Dassault for 36 fighters is 40 per cent higher than what Dassault had offered in 2012, in a global tender for 126 medium multi-role combat aircraft (MMRCA). 

Two senior defence ministry officials who were directly involved in contract negotiations with Dassault from 2012 onwards, have told Business Standard that Dassault’s winning bid amounted to Euro 19.5 billion for 126 Rafale fighters. The Euro 19.5 billion quote averaged out to Euro 155 million per aircraft. This included the cost of 126 fighters, technology transfer, indigenisation, India-specific enhancements,