The actual inking of two big-ticket deals between India and France — the Rafale deal for 126 fighter jets and an agreement on the Jaitapur nuclear plant — might still be some way away but when French president Francois Hollande comes to India next week, the two countries will be hoping to reassert their strategic ties.
Importantly, the Socialist President’s decision to choose India as his first and only destination in Asia is being considered politically significant. For, it’s being seen as a reconfirmation of the continuing robustness of bilateral ties despite the Socialists replacing the Nicholas Sarkozy-led Conservative government in 2012.
Significantly, Mr Hollande who will be here for two days beginning February 14 has chosen to visit India at a time when he is preoccupied with the French military operations in Mali as he is also the commander-in-chief of the French armed forces.
In the case of Jaitapur, the French seem to be driving a hard-nosed bargain as they pitch for an over 20 per cent hike in its estimated cost citing the safety measures they will put in place post-Fukushima. While India values its ties France, it’s unhappy about the huge cost differential for the Jaitapur nuclear plant . French state-owned company Areva is to build a six reactors in Jaitapur that will generate 1,650 MW of power. The finalisation of this pact got delayed following the Fukushima meltdown with India seeking assurance on safety. Now, the bickering over safety costs is holding up the final pact.
What also queers the pitch for Jaitapur are India’s nuclear liability laws. The legislative framework has not been finalised with the nuclear liability rules pending finalisation. Indeed, the CPI(M) has already sought an amendment to the Nuclear Liability Damages Rules, 2011 and a discussion on this matter in the Rajya Sabha.
As for the MMRCA (medium multi-role combat aircraft) Project worth almost $20 billion bagged by Dassault Aviation, complex negotiations are currently on as the two countries work to sort out transfer of technology issues with each other. For now, indications are that the Rafale deal will the one which is eventually sealed first. It’s has been learnt that Rafale manufacturers, Dassault Aviation, have made a proposal for 50 per cent offset as required by India. Also on the negotiating table is the kind of missile to be used on this fighter jet.
Mr Hollande will also be hoping to woo Indian companies to invest in France when he interacts with industry leaders. The commercial aspect doesn’t excite India too much as it would rather turn to Germany for technology and infrastructure.