India clears 950 million Euro deal for missiles
India on Wednesday cleared a Euro 950 million deal to procure 500 air-to-air missiles from a French firm for IAF`s Mirage 2000 aircraft fleet.
New Delhi: India on Wednesday cleared a Euro 950
million deal to procure 500 air-to-air missiles from a French
firm for IAF`s Mirage 2000 aircraft fleet.
A Cabinet Committee on Security (CCS) meeting chaired by
Prime Minister Manmohan Singh today cleared the deal to
procure 490 MICA missiles manufactured by French firm MBDA for
Euro 950 million, Defence Ministry sources said here.
The missiles would be deployed on the 51 Mirage 2000
aircraft, which are already undergoing upgrades at French
facilities under a Euro 1.47 billion deal signed earlier this
Under the deal, MBDA will have to do offsets worth 30 per
cent of the deal meaning that they will have to invest 315
million Euros back in the Indian defence sector.
The Defence Procurement Procedure (DPP) mandates that
foreign vendors bagging deals worth over Rs 300 crore have to
invest back at least 30 per cent of the contract`s worth into
Indian defence, civil aerospace and homeland security sector.
India signed a deal with French companies Thales and
Dassault Aviation, which will take ten years to carry out
mid-life upgrade of IAF`s 51 Mirage-2000 fighters.
Two aircraft have already been flown to France for
upgrades and the remaining would be modernised in India at
Hindustan Aeronautics Limited (HAL) facilities here in India.
"The cost of the contract for upgrade of the Mirage 2000
with Thales is Euro 1,470 million while the cost of the
contract with HAL is Rs 2,020 crores(around 340 million) Euro.
The upgrade of the aircraft is expected to be completed
by mid 2021," Defence Minister A K Antony recently informed