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Showing posts with label India-France ties. Show all posts
Showing posts with label India-France ties. Show all posts

Tuesday, 2 February 2016

French envoy promises a cheaper Rafale

French Ambassador Francois Richier

A week after the visit of President Francois Hollande, which failed to produce a breakthrough in pricing for the Rafale aircraft deal, French Ambassador Francois Richier says the price and the terms of delivery will be better than those negotiated by the previous United Progressive Alliance government, and the terms “should take no more than four weeks”.

“The price will be better, the conditions for delivery will be better, each and every part of the deal will be better than before,” he told The Hindu in an exclusive interview here.

Mr. Richier rejected criticism over delays, given that nine months have passed since Prime Minister Narendra Modi announced, during a visit to Paris, that India would buy 36 planes in a flyaway condition. He said it was “completely wrong to draw any link” between the President’s visit to Delhi and the conclusion of the Inter-Governmental Agreement, as had been widely speculated. “It would have been an artificial timeline and in a deal which will commit the countries for decades, that would have made no sense,” he said. India’s demand for “Make in India” components to the deal “would be done”. However, he said that once the India-France negotiations were completed, India could take a longer time to scrutinise the deal internally.

Mr. Richier’s comments come after questions whether the deal would go the way of the Indo-French “Make in India” Maitri missile partnership to build a surface-to-air missile that had made little movement on the ground since its announcement in 2009.

Also under question has been the Indo-French nuclear project at Jaitapur, which was started in 2009, but has not gone beyond the demarcation of land.

Mr. Richier said that during Mr. Hollande’s visit, several steps had been taken to expedite the nuclear partnership, and France was now committed to providing India nuclear fuel for the entire lifetime of the Jaitapur plant comprising six reactors of 1,650 MW each. However, the construction would take at least a year to start as the negotiations on pricing for Jaitapur and other elements were yet to be finalised.

Twin benefit
Mr. Richier said the reactors, when ready, would serve a twin purpose. “India needs electricity desperately and also is committed to increasing the share of non-polluting energy sources. So Jaitapur is part of the solution for India to cope with electricity crunch and the climate change challenge,” he said. In the first reaction to India’s decision to ratify the IAEA convention on supplementary compensation, four years after India signed it, Mr. Richier said France welcomed the announcement and felt “more comfortable” with the nuclear negotiations.

Mr. Richier also disclosed that while France welcomed any cooperation by India in fighting the Islamic State, Mr. Hollande had not asked Mr. Modi to join the coalition conducting air strikes in Syria and Iraq. Marking out the separate joint declaration on terror as a “platform for action,” he said France would also share with India a full brief on the Paris terror attacks in which 130 people were killed in November 2015. “So, we discuss our operations, we share information, and we have exchanges like the joint exercises between the armies,” Mr. Richier said, disclosing that French counter-terror forces GIGN and NSG that deal with urban terror would soon perform joint exercises.

He said France was disappointed by India’s decision to award the high-speed Ahmedabad-Mumbai rail link to Japan, but said it would now focus on the Delhi-Chandigarh sector, where it hoped to shrink the travel time from about 4 hours to just 1 hour. “Everything that India and France have discussed [during Mr. Hollande’s visit] is to set the stage for decades of cooperation.”

Sunday, 31 January 2016

Deepening the French connection

President Pranab Mukherjee with French President Francois Hollande and Prime Minister Narendra Modi waves during an At-Home reception hosted by him on the occasion of the 67th Republic Day at Rashtrapati Bhavan.

President François Hollande’s visit is the fifth such by a French leader to have been honored as the chief guest at the Republic Day, more so than any other country. Equally significant, this was his second state visit (the first was in 2013), a trend that was started by his predecessor, Nicolas Sarkozy, who was chief guest at the 2008 Republic Day and returned for another state visit in 2010. With corresponding visits by Indian Prime Ministers, this annual summitry highlights the expanding areas of cooperation and convergence between the two countries.

In recent years, India has entered into more than three dozen “strategic partnerships”, but France remains the original one. President Jacques Chirac had a long-standing interest in India and undertook three visits to India, in 1976, 1998 and 2006, the only leader to have been chief guest at the Republic Day twice, first as Prime Minister in 1976 and then as President in 1998. The second visit saw the establishment of the “strategic partnership” which was tested months later in May when India conducted a series of nuclear weapon tests. France was the first major power to open a dialogue with India. Within weeks, Brajesh Mishra (accompanied by the writer) was in Paris as Special Envoy of Prime Minister Atal Bihar Vajpayee. We were received by Mr. Chirac, who not only gave us a patient hearing, but also responded with a keen appreciation of India’s security predicament arising from the unbridled nuclear proliferation that had taken place in our neighbourhood. He designated Ambassador Gérard Errera as the interlocutor and the dialogue grew in scope as the French focussed on developing an understanding about our perceptions while they shared their thinking about the Balkan conflict, the risks of U.S. triumphalism and the worries about a resurgent nationalism in Russia.

Robust strategic partnership

This is the strategic dialogue that became institutionalized at the level of the National Security Advisers. The agenda has also expanded to include counter-terrorism, intelligence sharing and cyber-security issues, in addition to the original nuclear, space and defence related matters. The 57-paragraph-long Joint Statement covers these and also a wide range of other areas of cooperation — climate change and sustainable development, economic cooperation, urban development, human resource development, heritage preservation and cultural cooperation.

The terrorist attacks last year, on the Charlie Hebdo office in January and at multiple locations in Paris in November, have changed the way France looks at global terrorism. There is a realisation of vulnerability on account of the alienation in the French Muslim community. Radicalisation and the growing appeal of the ideology of global jihad is a real threat. This resulted in a standalone Joint Statement on counter-terrorism which seeks to do away with the caste system in terror strikes. If New York, London and Paris were horrific, so must Mumbai, Beirut and Nairobi be, and the statement makes that point effectively. It underlines the need for a comprehensive approach, removes any distinction between al-Qaeda and the terrorist groups targeting India like Lashkar-e-Toiba, Jaish-e-Mohammed and Hizbul Mujahideen, calls on Pakistan to bring to justice the perpetrators of the Mumbai attacks and calls for a dismantling of sanctuaries and safe havens in Pakistan’s border areas that can destabilise Afghanistan.
A push has been given to the Jaitapur nuclear plant negotiations by seeking to conclude these by the end of 2016, coupled with the affirmation that there will be six European pressurised reactors which should help in bringing the cost to below $5 billion for each reactor. To mark 50 years of India-France space cooperation, new projects for cooperation between the Indian Space Research Organisation and the French government space agency, Centre national d’études spatiales (CNES) have been announced, dealing with environment and weather monitoring, mapping of water resources and a joint Thermal Infrared Earth observation mission.

The implementation of the announcement made during Prime Minister Narendra Modi’s visit to Paris last April about the decision to purchase 36 Rafale combat aircraft in a flyaway condition, has been taken forward by signing a memorandum of understanding (MoU) which freezes the technical parameters, weapon payloads and lifetime servicing and spares needed. It is expected that the negotiations of the financial terms will be concluded in coming months. More significant are the joint ventures (JV) proposed to be set up between private sector entities in both countries that can provide a much needed boost to “Make in India” in defence. This should give greater content to the Agreement on Defence Cooperation, originally signed in 2006 and now extended till 2026, providing a framework for cooperation in defence production, research and development and procurement of defence materials.

Among the emerging areas of cooperation are homeland security, cyber security, special forces like the National Security Guard and its French counterpart GIGN, and intelligence sharing to tackle the common threats of terrorism and global criminal networks. Closely linked are concerns about Internet governance, surveillance by external powers and the dominance of U.S. companies in this field. Maritime security in the Indian Ocean region is another sector ripe for greater cooperation, given French presence by virtue of its territories (the Reunion Islands) for maintaining safety of sea lanes, tackling piracy and enhancing maritime domain awareness.

Business and educational ties

Cooperation in “strategic” areas is growing and the government-to-government relationship is the principal driver for this. Two areas that have been lagging are economic and trade relations as well as the people-to-people exchanges. The Hollande visit has sought to fix these by announcing a range of new measures. Bilateral trade between the two countries has been languishing at $8 billion, well below potential. French foreign direct investment has picked up and there are more than 800 French enterprises operating in India. These include industry leaders like Alstom, Airbus, Schneider, Alcatel, Total, BNP Paribas, L’Oréal, Renault, Sanofi Aventis, Veolia, Engie (GDF Suez), Thales, Vinci, etc. Capgemini, an IT major has a large workforce in India. With a large number of MoUs signed in sectors like urban development, solar energy, sewage and sanitation, urban transport including railways, water supply and entertainment, there appears to be a determined effort to make the business-to-business link more robust. Dovetailing the Smart Cities initiative is a good move in this regard. Nagpur, Chandigarh and Puducherry have been identified as three cities where French technical assistance and funding has also been promised. However, the challenge will be to develop viable public-private partnerships that can generate long-term funding and also make the projects self-sustaining in the long run.

An attempt has also been made to energise the people-to-people relationship by focussing on educational exchanges and skill development which creates a resource pool as Indo-French JVs generate greater employment opportunities. The number of Indian students going to France annually is 2,500 while the number of Chinese students is 10 times larger. Allowing larger number of French youth to intern in enterprises in India and easing visa norms for Indian students to work for two years after completing their education in France are steps in the right direction. Linkages between educational institutions need to be built up as more and more French institutions begin to offer bilingual courses.

Traditionally, the people-to-people relationship has been driven at the elite level of artists, musicians, dancers, writers and film-makers as eminent Indians in these fields have engaged with their French counterparts, but at a popular level, it lacks a buzz. Out of seven million foreign tourists visiting India annually, the number of French tourists is less than 3,00,000! Direct air links between India and France are a fourth of those between India and Germany. An Indo-French Centre for the Promotion of Advanced Research has been in existence for nearly three decades but limited budgetary resources hamper its activities. It needs to be restructured to permit it to raise resources from Indian and French industry; for this, the scope of projects needs to be broadened. Cultural festivals have been a regular feature but events need to be planned outside the metropolises, taking local calendars into account.
The strategic relationship between the two countries has developed over the years generating a sense of comfort between the relevant government agencies. What are needed are initiatives that can strengthen business-to-business linkages and people-to-people contacts which can, in turn, provide a broader underpinning to the overall bilateral relationship. The Hollande visit has rightly sought to focus on these sectors. If these can be effectively implemented, it will help establish a more balanced relationship between the two countries, with overlapping networks of stakeholders from all sections in both societies.

Sunday, 24 January 2016

Rafale deal likely to see some progress

In this January 13, 2016 photo, a Rafale fighter jet lands after a mission, on France's flagship Charles de Gaulle aircraft carrier in the Persian Gulf.

Amid a slew of areas of cooperation to be announced by India and France on Monday, all expectations are on the government-to-government agreement for the purchase of 36 Rafale fighter jets.

In an indication of the progress, French President Francois Hollande said in Chandigarh on Sunday that one of the main aims of his visit was to “implement the decisions taken during Prime Minister Narendra Modi’s visit to France.” While the final deal seems unlikely owing to differences over pricing, the conclusion of the government-to-government agreement seems on the cards.

“The Rafale is a major project for India and France. It will pave the way for an unprecedented industrial and technological cooperation, including ‘Make in India’, for the next 40 years. Agreeing on the technicalities of this arrangement obviously takes time, but we are on the right track,” he said in an interview to PTI.

Will the fighter get a cheaper price tag?

A senior government official, speaking about the Rafale fighter jet deal, said efforts were on to reduce the price per aircraft by 20 per cent, which is now over Euro 100 million or Rs. 800 crore, along with the weapons package.

In a surprise move, Prime Minister Narendra Modi, during his visit to Paris last April, announced the decision on the direct purchase of 36 Rafale fighter jets, citing the “critical operational necessity” of the Indian Air Force. Teams from both countries have been holding hectic talks over the last few days to finalize the draft of the government-to-government agreement, which will lead to the commercial deal. However, the final deal has been delayed by differences over pricing and delivery schedule. “My impression is essentially the hurdles have been removed,” the former Ambassador, Kanwal Sibal, told The Hindu, referring to the resolution of the offset issue.

Helicopter project

Mahindra of India and aircraft major Airbus signed an agreement to establish a joint venture to build military helicopters in India under the ‘Make in India’ initiative.

This is the second helicopter project under the Make in India drive of the government after the Kamov utility helicopter project with Russia.

“The companies are proposing to set-up a final assembly line in India, develop tier-1 and tier-2 suppliers and make extensive transfer of technology, with the intent to ultimately achieve 50% indigenous content,” Airbus said in a statement

The two companies have already initiated industrial relationship to produce helicopter parts locally and are defining additional work packages to be industrialized in India in the case The JV wins a project.

Other deals likely to be discussed by the two leaders in their bilateral talks are additional Scorpene submarines, six of which are currently under construction in Mumbai and joint development of medium range Surface to Air Missile (MR-SAM), Maitri.