French Defence Minister Jean-Yves Le Drian arrived in India on Thursday to sign the Rafale fighter aircraft deal, The Times of India reported. The deal is likely to be signed on Friday. This is India’s first fighter jet deal in 20 years, the report added. Delivery of the aircraft will begin in three years.

According to the deal, which is worth about €7.87 billion (Rs 59,300 crore approximately), India will also get spare aircraft, Meteor missiles and other weaponry from France’s Dassault Aviation, which makes the jets.

Government officials said they have been able to bring down the price of the aircraft by about €600 million (Rs 4,500 crore approximately) from the earlier quotation in January after tough negotiations. Out of the total cost, 50% will be covered under offset, meaning either France will reinvest this amount in India or buy equipment of this value from India. However, the agreement also says that there could be a 10% increase in the price on the follow-on order.