New Delhi  - India’s negotiations with France’s Dassault Aviation on a $12b deal for Rafale fighter jets have stalled due to disagreements over the production of the planes in India. The defence deal, one of the biggest ever, was to see the manufacture of the first 18 of the jets in France with the remainder to be produced under licence by Hindustan Aeronautics Limited (HAL).

The Indian Express newspaper, citing anonymous sources in its report, said that Dassault had refused to take responsibility for the 108 jets to be manufactured by HAL, sparking a row with New Delhi.

The French firm reportedly told Indian officials that New Delhi would have to negotiate two contracts, one with Dassault for 18 fighters and the other with HAL for the remaining 108 aircraft.