The expiry of the original Performance-Based Logistics agreement for the Indian Air Force’s Rafale fleet has prompted the Ministry of Defence to put in place a bridge arrangement with Safran, while deeper negotiations for a long-term framework continue.

This interim measure ensures that maintenance and overhaul support for the M88 engines continues without disruption while a larger, long-term framework is negotiated.

Far from being a setback, the development reflects a natural transition in India’s evolving defence logistics strategy, with the bridge contract serving as a stabilising mechanism until deeper industrial cooperation and technology transfer agreements are finalised.

Safran’s new Hyderabad facility, the first M88 overhaul shop outside France, is central to this strategy and is designed to support both current and future Rafale fleets.

The Indian Ministry of Defence has acted swiftly to prevent any maintenance gaps for the Rafale fleet by establishing an interim arrangement with Safran. This bridge contract ensures that the supply chain and maintenance, repair and overhaul support for the M88 engines remain seamless while a larger, long-term logistics framework is negotiated. The move reflects India’s determination to avoid operational risks during the transition period.

Safran has inaugurated its Safran Aircraft Engine Services India unit in Hyderabad, which is dedicated to the M88 military engines powering the Rafale. This €40 million facility, spread over 5,000 square metres, is the first of its kind outside France.

It is designed to service more than 600 engine modules annually and will employ up to 150 people at full capacity. Located adjacent to Safran’s massive LEAP commercial engine centre, the site positions Hyderabad as a major aerospace hub.

The facility will prioritise engines for the Indian Air Force’s 36 Rafales and extend support to the 26 Rafale-M jets ordered for the Navy. It will also cater to export customers, making India a global centre for M88 sustainment.

The presence of Prime Minister Narendra Modi and senior ministers at the ground breaking underscored the strategic importance of this investment. Safran’s leadership has committed to tripling its India revenue to over €3 billion by 2030, with half generated from local sites, and multiplying sourcing from India fivefold.

Safran’s localisation strategy is ambitious. The company has offered to establish a dedicated M88 assembly line in India, aiming for 40–60% local content. Around 200 engines could be assembled domestically under this plan.

While advanced core components will initially be supplied from France, Indian suppliers will gradually be integrated to manufacture subsystems and parts under Safran’s supervision. This aligns with the “Make in India” initiative and strengthens India’s aerospace ecosystem.

The long-term framework under negotiation mirrors the logistics agreements already made for the Navy’s Rafale-M fighters. It is expected to lock in deeper industrial cooperation and technology transfers

 Full localisation of the M88 engine is contingent on India placing the larger order for 114 Multi-Role Fighter Aircraft under the MRFA program. Dassault Aviation and TATA Advanced Systems Limited are already producing Rafale fuselages in Hyderabad, and the siting of the M88 facility nearby consolidates the city’s role as a defence manufacturing hub.

Safran’s expansion in India is not limited to engines. The company has signed a joint venture with Bharat Electronics Limited to manufacture the Hammer air-to-surface weapon locally. It is also investing €200 million in the world’s largest LEAP engine MRO centre in Hyderabad, which will employ up to 1,100 people and train more than 100 technicians annually.

These moves highlight Safran’s commitment to India’s civil and defence aerospace markets and its strategic autonomy.

The broader outlook is clear. India’s partnership with Safran is not only about sustaining the Rafale fleet but also about embedding advanced aerospace technologies within the country.

The industrial technology transfers from the M88 program will bolster indigenous defence capabilities and complement joint ventures with Hindustan Aeronautics Limited. If executed effectively, this collaboration will ensure long-term resilience for India’s air power and position the nation as a global player in aerospace manufacturing.

Agencies