India Clears $2.4 Billion Combat Planes Upgrade Project

The government on Wednesday cleared a $2.4 billion deal with France for upgrading India's Mirage-2000 combat planes, informed sources said. The deal was cleared at a meeting of the Cabinet Committee on Security (CCS) chaired by Prime Minister Manmohan Singh, the sources said. The move comes even as India's defence ministry and the Indian Air Force top brass is split over the high cost of upgrading the IAF's 52 Mirage-2000 aircraft and the likely benefits to the country's future air power needs. Taking into account $1 billion for new weapons and another $500 million for new facilities at Bangalore-based Hindustan Aeronautics Limited (HAL) for the upgrade, the cost could rise to close to $4 billion, defence ministry officials said. The cost of the upgrade may work out to $7.9 million per aircraft, which, the opponents of the deal contend, is the same as that of a new fighter jets that India is buying under the $10.4 billion medium multi-role combat aircraft (MMRCA) tender. Those supporting the deal argue that once upgraded, the aircraft will be as potent as a new combat plane.