India turns to Russia for fighter jets as $20bn French deal stalls

Sukhoi PAK FA T-50

Sukhoi PAK FA T-50

India turns to Russia for fighter jets: India’s frustration over its stalled $20 billion fighter jet deal with France has prompted New Delhi to accelerate plans with Russia to begin co-production of another, more advanced PAK FA fighter jet with Russian know-how. The two BRICS states are in the final stages of negotiating a contract for the delivery of a brand new fighter being developed by a team led by Sukhoi’s design bureau. 
The original plan stipulated that the fighter be built in India, with the first deliveries taking place 94 months after the contract was signed. The total cost of the contract is reported to be over $25 billion for 127 new fighters. But now the Indian government has told Russia is willing to drop demands for localized production of the new aircraft, known as the PAK FA, if they can promise deliveries beginning 36 months after the contract is signed, according to unidentified Indian military sources quoted by the Times of India.
In 2012, India awarded France’s Dassault Aviation a multibillion-dollar contract for 126 of its Rafale fighter jets in what was called one of the largest aviation contracts of all time. That deal stipulated that most of the fighters would be built by Hindustan Aeronautics in India, making it a large technology transfer deal. But three years on, the two sides are still locked in a price dispute, with Dassault saying localization will cost more than it anticipated. India has said it will not pay above the contract price agreed in 2012, and suggested it will pursue alternatives if Dassault does not give ground.