INDIA HAS FINED FRENCH COMPANY DASSAULT AVIATION FOR DELAYING COMPENSATION.

The Indian government imposed a fine on French company Dassault Aviation last month for delaying compensation obligations that were part of a 2016 deal for 36 Rafale combat aircraft, Defense News has learned.

The governments of France and India signed a contract worth €7.8 billion (US$8.8 billion) in September 2016. Under the arrangement, 50% of the contract value will be matched and implemented by Dassault Aviation and its partners Safran and Thales within seven years. .
To implement the offsets, the three companies are working closely with more than 70 Indian companies and Defense Research and Development Organizations. A senior defense scientist in India said DRDO was seeking from French businesses some technologies related to stealth capabilities, radars, space engines, thrust vectors for missiles and materials for electronics.

An Indian Ministry of Defense official told Defense News that the penalty would come from a €185 million bank guarantee funded by Dassault Aviation as protection against breach of contract. The official spoke on condition of anonymity because the person is not authorized to speak to the media.

The official would not share the value of the penalty imposed on Dassault Aviation, or any individual details that hindered the implementation of the indemnification obligations.
Under MoD policy, original equipment manufacturers can offset by buying related goods or services from Indian suppliers, by making foreign direct investment in India's defense industry, or by transferring advanced technology.

When asked for comment, the French Ministry of Armed Forces referred Defense News to Dassault Aviation, which did not return a request for comment.

French Armed Forces Minister Florence Parly and Indian Defense Minister Rajnath Singh met on December 17 to discuss how to improve bilateral defense cooperation. During the 3rd annual dialogue, the Ministry of Defense pointed out that some French defense companies are not cooperating on technology transfers to the DRDO.

MoD sources said the French business had claimed the Indian company expected to receive the technology transfer did not meet the required core competencies.
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SOURCE: https://www.defensenews.com/industry/2021/12/20/india-fines-french-firm-dassault-aviation-over-offset-delays/