UPDATE 1-FACTBOX-India, France unveil deals worth up to $20 bln

Published 12/06/2010, 11:56 AM
Updated 12/06/2010, 12:00 PM

(Adds industry officials on Airbus deal)

Dec 6 (Reuters) - France's President Nicolas Sarkozy on Monday unveiled upto $20 billion worth of defence, atomic energy and civil aviation deals with India during a four-day trip to the country.

Following are details of signed deals between India and France, agreements close to completion, and possible future deals:

SIGNED DEALS:

AREVA

In a deal estimated at 7 billion euros ($9.3 billion), French nuclear power group Areva signed a framework agreement with state-owned Nuclear Power Corporation of India to provide two pressurised water reactors to a site in the western state of Maharashtra.

Construction for the reactors, the first in a series that France is expecting to supply, will start next year and operations will start by 2018. The deal includes the supply of reactor fuel for 25 years.

AIRBUS

A government statement said European group Airbus has signed lease contracts to supply A330 aircraft to India's Jet Airways and state-run carrier Air India in separate deals totalling 2.8 billion euros.

But aviation industry officials later said the deals were likely to involve renting the planes from banks or other third parties and would not generate new business for Airbus.

MICHELIN

French tyre maker Michelin signed a protocol contract with the southern Indian state of Tamil Nadu to invest around 600 million euros in a factory.

ADVANCED TALKS TO SEAL DEALS:

THALES

Indian and French officials are close to signing two deals with European defence electronics group Thales to modernise India's ageing air force.

Negotiations are under way on a 1.5-billion euro deal for Thales to upgrade India's Mirage fighter jets, and an agreement for Thales to equip the Mirage jets with missiles worth 700 million euros.

MBDA

European missiles and missile systems manufacturer MBDA, whose major shareholders are BAE Systems, EADS and Finmeccanica of Italy, are close to signing a deal with India to jointly develop surface-to-air missiles in a deal worth 2 billion euros.

SAFRAN

French defence and aerospace conglomerate Safran is in advanced negotiations to jointly develop a fighter jet with India in a deal worth 500-700 million euros.

OTHER POSSIBLE DEALS:

French President Nicolas Sarkozy said he was still hopeful that India would also buy the Rafale fighter jet produced by France's Dassault Aviation.

Dassault faces stiff competition in the race for the $11 billion deal, currently the world's largest single military contract, from the Typhoon aircraft made by the Eurofighter consortium and other U.S. and Russian bidders.

(1 euro = U.S. $1.33)

(Writing by Henry Foy; editing by Malini Menon)

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