India, France set to ink US$2.2 billion Mirage upgrade deal

02 March 2010 8ak: Indian Express reports that India is set to ink a US$2.2 billion deal with France for the upgrade of 52 Mirage-2000 aircrafts (other sources say 51 and ToI puts the number between 54 & 56) ahead of President Sarkozy’s visit later this year.

The deal for the aircraft upgrade, which the IAF has been operating since the 1980s, was stuck for over two years primarily due to the difference in opinion on the price quoted by the French manufacturers Dassault Aviation, Thales and MBDA (consortium). It is believed that the original price quoted by the companies for the upgrade was US$58 million per aircraft but after tough negotiations the price has been reduced to US$43 million a unit. Sources say that the Israelis were very keen to do the upgrades at a lower cost but obviously this would not go down well with either the original equipment manufacturer, Dassault Aviation, nor the French government.

The upgrade will include new avionics including an advanced navigation system, new mission computers with increased capacity and processing speed, helmet-mounted displays, glass cockpits, internal electronic warfare suites and, better armaments & weapon systems making the aircraft battle-worthy for another 15 years.

Earlier, 8ak had reported that the French President Sarkozy had personally thrown his weight behind the deal and sent French defence minister Hervé Morin to New Delhi in December 2009 to push the deal, before his Indian visit.

Defence Ministry sources say that the deal is important from strategic and diplomatic point of view as well. After the cancellation of the A330 mid-air-refueller deal and the US$1 billion deal for purchase of 197 helicopters from Eurocopter, the European partner countries including France were unhappy with the decision making process.