LOC15:06
12:06 GMT
NEW DELHI, Feb 7 (KUNA) -- India has said that it will not sign a USD 20
billion deal to purchase 126 Rafael fighter jets from Frances Dassault
Aviation due to scarcity of defense funds, Indian media reported on Friday.
The media quoted Indias defense minister A.K. Antony as saying that India
was not having the required defense budget to buy the multi role aircrafts.
"Ninety-two percent of our budget has already been used, with only 8
percent left," Antony said as quoted by the media. "Almost all the budget has
been spent. Many other projects are also in the pipeline," he said.
The defence minister has said the remaining eight percent funds allocated
to its ministry would be utilized for modernization of defense forces, reports
added.
India in January 2012 decided to buy 126 Rafale fighter jets from Frances
Dassault Aviation after an extensive auction process, and the deal was
expected to be finalized by March 2014.
However, the reports quoting Antony said the deal was intact and its
finalization has to wait for the next financial year starting 1 April, 2014.
"MMRCA (medium multi-role combat aircraft) will materialize, only that (it
will) not (in) this financial year but next financial year," Antony said,
adding the Government was making headway in the Rafale deal and taking all the
possible care in the process to ensure that there are no loose ends, the media
reported. (end)
wk.mt
KUNA 071506 Feb 14NNNN