India virtually scraps deal with France to buy 126 Rafales

India has virtually scrapped its gigantic arms deal with France to purchase and jointly build 126 Rafale jet fighters, after Prime Minister Narendra Modi agreed to buy 36 of such fighters during his visit to Paris last week, said a government official Monday.

Defense Minister Manohar Parrikar said that if India goes in for additional French Rafale fighters, it will also be through government-to-government deals.

In January 2012, India chose Rafale as objects for its largest arms purchase in decades, with an estimated cost of 20 billion U.S. dollars. But the deal was shelved after Modi came to power.

"A car cannot travel on two roads at the same time. The other road had a lot of problems," Parrikar said in reference to the former deal with France on Rafale, struck under the former Congress-led government.

But the minister has also hailed the purchase of 36 Rafales as "oxygen" for Indian Air Force.

He did not specify how many additional Rafales would be acquired after the first Rafales are inducted directly from France within two years' time.

To buy as many as 126 jets "would financially be a very steep slope to climb", he said. Endi