New Delhi, Dec. 10: Israel is close to swinging an order to upgrade French-origin Mirage 2000 aircraft with the Indian Air Force (IAF) despite France’s charm offensive in hosting the Indian military on the Champs Elysees.
Tel Aviv has offered to upgrade the frontline fighter aircraft, of which the IAF has three squadrons, at rates nearly 40 per cent less than the price quoted by the French.
Israel, whose chief of defence staff returns to Tel Aviv after visiting New Delhi this week for the first time since diplomatic relations were established in 1992, is also favoured to win an order for 18 quick-reaction surface-to-air missiles (QR-SAMs) from the Indian Army that could cost more than Rs 2,000 crore.
The possible loss of the Mirage 2000 upgrade bid will hurt the French the most.
In July this year, France had hosted Prime Minister Manmohan Singh and, in a rare honour, contingents of the Indian armed forces led the Bastille Day parade. Last week, French defence minister Herve Morin was in New Delhi courting the Indian defence establishment.
Early next month, President Nicolas Sarkozy could be back in India with wife Carla Bruni whom he has promised to take to Taj Mahal. Sarkozy visited India in January last year minus Carla.
Defence ministry sources said the delegation led by Israeli defence services chief, General Gabi Ashkenazi, made presentations to the top brass, including the chief of air staff, Air Chief Marshal Pradeep Vasant Naik, on the Mirage 2000 upgrade that Israel Aircraft Industries would carry out in collaboration with other firms.
In back-of-the envelope calculations, the cost of the Israeli bid totals Rs 96 crore per aircraft while the French bid is worth Rs 152 crore. The IAF has at least 51 Mirage 2000s.
The upgrade would include superior avionics and electronic warfare systems that would extend the service life of the aircraft by 15 years.
Although French companies Dassault Aviation and Thales are the original equipment suppliers, the price quoted, say defence ministry sources, may be put to better use by ordering new aircraft.
The French have already beaten down prices and there is a possibility they will go even lower. They are keen that the deal be done at the time of Sarkozy’s visit, though similar hopes during Singh’s Paris visit in July were dashed.
For the Spyder QR-SAM missile systems, the army may sign a contract within a month. The IAF has already contracted the Israelis for the systems.
The close-range missile defence systems are meant as a protective shield for the army’s critical immovable assets.