NEW DELHI: India and France will not sign a contract for nuclear reactors at Jaitapur during the forthcoming visit of French President Francois Hollande. Neither will they seal the deal for 126 Rafale fighter aircraft. But as Hollande makes India his first stop in Asia, both sides are keen to showcase a growing relationship.
The complex negotiations for the nuclear reactor deal will get a leg up during the official talks. Described as "complex", the deal has been caught in the toils of nuclear protests in India, the Indian nuclear liability law and review procedures for the European Pressurized Reactor (EPR) in a post-Fukushima environment.
India and France have started a dialogue on "civilian nuclear responsibility" which is a euphemism for consultations on the liability law. While France has not expressed displeasure, it continues to have concerns and the dialogue is intended to find answers to the vexing issues of supplier liability clauses in the law. After a first meeting, the two sides are expected to have a second in the run-up to the visit. However, there is an expectation of an agreement for joint manufacture between NPCIL, Areva and Alstom.
Meanwhile, sources said the EPR has been subject to a year's review of its safety features -- China has two EPRs and Finland has one. France's Areva has reportedly carried out a few fixes and enhanced the safety features. "These have been shared at every stage with the Indian nuclear authorities," said diplomatic sources.
The Rafale deal has probably been pushed further down the year because India is cash-strapped. Rafale won the race for supplying 126 MMRCA to India, but during his recent visit to Paris, foreign minister Salman Khurshid said India had asked France to supply an extra 63 aircraft. The deal, under which the first 18 aircraft will be manufactured in France and the rest in India, involves an extraordinary number of related offset deals, as well as questions of technology transfer.
In his conversation with PM Manmohan Singh, Hollande is expected to talk about Mali, where French troops are fighting to oust al-Qaida from the desert. India, unexpectedly, has stepped up to be involved in the Mali campaign, contributing to upgrading the Malian army as well as contributing $100 million to the stabilization and reconstruction of the desert state.
No Rafale, nuclear deals during Hollande visit
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No Rafale, nuclear deals during Hollande visit
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No Rafale, nuclear deals during Hollande visit
