India's government has been in negotiations since 2012 to buy 126 Rafale jets from France's Dassault Aviation, but the estimated $12 billion dollar deal has hit roadblocks over cost and assembly of the planes.
Reports said ahead of talks between Modi and French President Francois Hollande on Friday that the government was considering a direct purchase of a smaller number of jets to accelerate the acquisition and replace its ageing stock.
The Hindustan Times said the government was "seriously considering a strategic purchase of up to 40 Rafales for the Indian Air Force" due to "operational necessity", with further purchases later.
It quoted an unnamed source as saying a new deal could be worked out this year, with the exact number of planes depending on the final price.
READ ALSO: India draws bottom line for Rafale
Defence analyst Nitin Gokhale reported on his blog, Newswarrior, that the government had decided ahead of Modi's first official visit to France to buy 60 jets.
He quoted unnamed sources as saying Modi would would discuss the deal with Hollande on Friday.
"The issues you referred to will also be discussed. We expect movement on these issues," MEA spokesman Syed Akbaruddin said in response to a question on the deal.
"There will be substantive discussions on defence and nuclear issues. Wait for the outcome," Akbaruddin added.
Until now the Indian government has been negotiating directly with Dassault, whose boss Eric Trappier recently insisted the deal was "95 per cent finalised".
Hollande has said he and Modi "will have discussions" about the Rafale deal while stressing he did not want the issue to define their relationship.Both the Indian defence ministry and Dassault declined to comment.
Akbaruddin said India expects French companies to participate in 'Make in India' programme in the field of defence as well as civil nuclear energy, "where India can make some nuclear installations with France."
The Jaitapur project, where French company Areva is to set up six nuclear reactors with total power generation capacity of about 10,000 MW, is stuck for long because of differences over the cost of electricity to be generated.
Modi, who arrived here on Friday on a four-day visit, will also address two meetings with French CEOs — one on infrastructure and another on defence.
He will also have 'Naav pe Charcha' (chat on boat) with Hollande when they go for a cruise on Seine river which passes through Paris.
(With inputs from agencies)
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