India picks France to supply 126 fighter jets

A Dassault Rafale fighter jet takes part in a flying display during the 49th Paris Air Show at the Le Bourget airport near Paris in this June 21, 2011 file photo. [Photo/Agencies]

NEW DELHI - India has selected French firm Dassault Rafale to supply 126 multi-role combat aircraft to its air force which aims to replace its aging fleet of MiGs, in one of the world's biggest defence deals worth over $11 billion, local media reported on Wednesday.

Though the Indian Defense Ministry has made no formal announcement, local TV channels have quoted sources as saying that the French firm was selected after it emerged as the lower bidder in the Medium Multi-Role Combat Aircraft (MMRCA) competition beating the only other rival Eurofighter.

Under the MMRCA project, the first 18 jets will come in "fly- away condition" from France from mid-2015 onwards, while rest 108 fighters will later be manufactured in India over six years after transfer of technology to Hindustan Aeronautics.

Moreover, the contract comes with a 50 percent offset clause, which means half the value of the deal must be spent in India, thus spelling cheering news for public and private defense contractors.

The Rafale jet is an Omni role fighter which means it can carry out ground attack, air defense and reconnaissance roles. It can carry anti-ship, air-to-air and air-to-ground missiles. Powered by two engines, it can also carry nuclear weapons.

Indian Air Force has a strength of 127,000 personnel and operates around 1,380 aircrafts.

France, the only major Western country not to impose sanctions on India after the 1998 Pokhran-II nuclear tests, has welcomed the decision.

"The negotiation of the contract will begin very soon with the full support of French authorities. It will include major transfers of technology guaranteed by the French state," French President Nicolas Sarkozy told the media in Paris.