How India's Acquisition of 110 Upgraded Rafale F4 Fighter Jets Under MRFA Tender Could Cost $27 Billions, Exceeding $20 Billion Budget

The Indian Air Force's (IAF) plan to acquire 110 multi-role fighter aircraft (MRFA) could become significantly more expensive than initially anticipated. A Ministry of Defence (MoD) official has indicated that opting for the advanced Rafale F4 configuration, as opposed to earlier variants, may drive the total cost to around $27 billion, considerably exceeding the allocated budget of $20 billion.

This potential cost increase is linked to several factors. Firstly, the UAE's recent purchase of 80 Rafale jets, valued at $16 billion in 2020, provides a benchmark. Adjusting for inflation, that deal would be worth approximately $17.6 billion today. India's requirement for 110 jets would inherently increase the cost. Furthermore, the inclusion of technology transfer (ToT) in the Indian deal adds another layer of expense.

The MoD official highlighted that the Rafale F4 boasts significant enhancements over its predecessors. These include advanced features like the Thales Scorpion Helmet Mounted Display, MBDA’s MICA NG missile, and improved satellite communications. These upgrades, combined with the complexities of local production and ToT, are expected to push the acquisition cost well beyond the initial $20 billion projection.

While the Acceptance of Necessity (AoN) for the MRFA program is still pending from the finance ministry, the MoD official emphasizes the strategic importance of these advanced capabilities for India's defence posture in the current geopolitical climate. However, the escalating cost presents a significant challenge to the government's financial planning and defence budget.

This situation presents a complex dilemma for the Indian government. Choosing to proceed with the Rafale F4 acquisition could necessitate difficult decisions, such as cost-sharing agreements with Dassault Aviation, phased payments spread over a longer period, or even a reduction in the number of aircraft purchased.

Alternatively, the IAF may need to reconsider and evaluate other fighter aircraft options that could fulfill its operational requirements within the existing budget constraints. The final decision will ultimately depend on a careful balancing of operational needs and financial realities.

 

[Ajay Krishna]

Typhoon maintenance cost is high and it is very old with no stealth. Better get Su-57 or Korean stealth plane with TOT. Even the EU is not keen to maintain Typhoon at such a high cost because of old supply chains.

5th gen fighters are even more costly. Operationally, once air supremacy or atleast air superiority is established, deploying 4.5 gen fighters is more cost effective than deploying 5th gen fighters. Hence, we need a balanced fleet of both 4.5 & 5th gen fighters.

 

[Dipesh Debnath]

5th gen fighters are even more costly. Operationally, once air supremacy or atleast air superiority is established, deploying 4.5 gen fighters is more cost effective than deploying 5th gen fighters. Hence, we need a balanced fleet of both 4.5 & 5th gen fighters.

I agree that it is needed,but not the typhoon. EU themselves are finding it difficult to support the eurofighter beyond 2040.

 

[prasant kumar shaarma]

MRFA does not make any sense now. Buy some F-35/SU-57 and spend the rest of the budget directly on Tejas and AMCA. Work on the war front. Induct AMCA by 2030-31. If you work on the war front then you will be able to do it. Why are the IAF people not understanding this simple logic? There is no benefit in buying 4th gen fighters again through MRFA. This work should have been done long ago. This drama has been going on for 20 years.

Some of the technology offered through MRFA is needed by us for the development of of our own aircrafts ,be it 4th or 5th generation.
Nothing is free in this world.
We have only consolation that we are not pariah like China and Pakistan who can't buy these technologies even for a heavy price.

 

[Varaaah]

Put all the money in speedily developing the Tejases, the AMCA, TEDBF, anything Indian.
French ka jeb mat garmaao. The more you give them, the greedier they become, I have noticed.

 

[beencensured]

Don't import gold plated 4th gen jets in large number. We will be producing a large number of 4th gen jets in coming years. We will produce 5th gen AMCA after 15 years. Better to limit costly 4th gen jets imports and get a few squadrons of 5th gen jets.

IF they make AMCA as priorty there is real possbility this could be done earlier.

 

[beencensured]

Exactly there is going to be no war in the recent future. It's probable only after china surpasses usa until then they are waiting so using this time to invest heavily on amca would prove valuable than wasting 30 billion on a 4th gen.

War is not something to predict, it something to be prepared for.

 

[Enforcer]

Every 5th gen is much more advanced than 4th gen, thats why they are called 5th gen.

Tell that to people who still want to buy or develop 4th gen right now.

 

[Jay K Sinhal]

Buy two more squadrons of rafale and close this chapter to move on with the 5th generation aircraft.

 

[Sandeep]

India isn’t going to buy anymore Rafale jets after the Rafale M jets. They are far too expensive and it will cost even more if we try manufacturing them indigenously rather than importing it directly.

Also we won’t receive any critical ToT or get to manufacture the critical parts, components and technology and build it.

 

[aksinghal]

I will not suggest going for 114 fighter jet in one go. 1st give order of 52 Rafale only and start building tejas mk2. Because tejas mk2 is almost like rafale if we integrate advanced uttam radar, astra mk3 and brahmos. I would suggest buying just 36 as of now. No need of 114 jets...

 

[kunites]

It's simple... each year of delay in a decision by GOI, more of taxpayers' money will be wasted due to price rise. It's time to take the bitter pill and cough up the extra money needed to address the precarious squadron strength of IAF. Even if Rafale is a 4.5 gen aircraft, it's still a very capable and proven aircraft. Not like F-35 which is crashing every other day and Su-57 which is not exactly 5-gen and will take time to mature. IAF can order 36 Rafale F4 with a follow-on order for another 36 F-5 which will be still in budget. By the time these aircraft get inducted in IAF, we would be on course with MK2 and AMCA.

 

[Satish]

27 billion for 110 rafale? Dang.
that is approx
329 F-35A or
334 J-20

IAF is getting ripped off.

Probably you didn't read Made in India and Transfer of Technology clauses.

 

[Senapati]

No more Rafal.
Make 110kn Engine under joint development with US Safran or South korea.
Develop AMCA and TEDBF.
Go for make in india Su57 or Su75 with Al51 engine.

 

[Anant]

Australia bought 72 f-35 and paid aprox 92 million usd for each.

The U.S. can produce it for around 80 million each.

But don't worry about India, they aren't getting any F-35, even if they are paying 300 million each.

1. Not sure where you got that 92 million USD figure from, given Australia sighed a deal for 58 F-35s for USD 11.5 billion in 2014. That works out to just shy of 200 million USD each before one factors in inflation. Oh, and any developmental costs paid by Australia as a Level 3 partner would also have to be amortized into the cost of the 72 F-35s.

2. Yes, the US can manufacture F-35s at a cost of around 80 million USD each. However, once you factor in things such as spares, support equipment, ground infrastructure, any munitions, and export margins, the final cist is significantly higher.

3. Did I say anywhere that India should buy the F-35? Heck, it is posited here that the F-35 isn't ideal for our needs, even if it was on offer. So, please do yourself a favour and don't make unnecessary leaps of faith, eh?

 

[Bik_Brave]

Purchase 110 SAB Gripen E in approx 10 billion and save 10 billions for faster R & D on AMCA/ TEDBF. Because 1 Gripen is costing 80-85 million dollars only.