Defence Ministry Imposes Fine On MBDA Under Rafale Deal

The defence ministry has imposed a fine of fewer than 1 million euros on European missile maker MBDA for the delay in fulfilling its offset obligations under the Rafale aircraft deal, sources said on Wednesday.

French aerospace major Dassault Aviation is the manufacturer of the Rafale jets while MBDA supplies the missile systems for the aircraft.

Rafale Aircraft

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India had signed an inter-governmental agreement with France in September 2016 to procure 36 Rafale jets at a cost of Rs 59,000 crore, and the offset obligations were part of the contract.

As a part of the deal, 50 per cent of the total contract value has to be reinvested in India as offsets in each year between September 2019 and September 2022.

The sources said the defence ministry has imposed and collected a fine of fewer than 1 million euros from MBDA for delaying its offset obligations for the September 2019-September 2020 period.

MBDA has deposited its penalty but has also lodged its protest with the defence ministry, they said.

MBDA did not respond to PTI’s request for a statement on this matter.


Rajesh Negi

Defence & Sports Enthusiast

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