India defers purchase of multi-billion dollar program M-MRCA Rafale jet fighters aircraft.

India has negotiated for over two years with Dassault Aviation for 126 Rafales, Defence Minister A.K. Antony today said the deal was delayed not just by a complaint on life cycle cost calculations, but also because the government was short of funds.

Antony was speaking at his opening press conference at Defexpo 2014 today.

"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.

"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.

Final negotiations with Dassault on Rafale jet are also continuing, Antony said, adding that he expects the deal to be completed next fiscal year.