Rafale deal: a secretive conspiracy? Modi is a Thief confirmed? Who will make Rafale HAL or Reliance Defence Ltd.?
HIGHLIGHTS
- The Centre revealed the price details of Rafale fighter jets in sealed cover to the top court
- The government also submitted the details of the agreement relating to induction of Indian offset partners by Dassault and the company fitting weapons to the aircraft
NEW DELHI: In line with the Supreme Court's order, the Centre on Monday made public a redacted version of the Rafale deal decision-making process.
The Centre also revealed price details of Rafale fighter jets in sealed document — titled "Details of the steps in the decision making process leading to the award of 36 Rafale fighter aircraft order" — to the top court. It had on October 31 claimed privilege on it and SC had asked it to file an affidavit why it cannotreveal Rafale jetprices.
The Centre also revealed price details of Rafale fighter jets in sealed document — titled "Details of the steps in the decision making process leading to the award of 36 Rafale fighter aircraft order" — to the top court. It had on October 31 claimed privilege on it and SC had asked it to file an affidavit why it cannotreveal Rafale jetprices.
When asked about it, Centre's counsel said the government has nothing to hide and hence it was decided that Rafale prices could be revealed only for Judges of SC
, which is hearing three PILs alleging scam in fighter jet purchase deal.
, which is hearing three PILs alleging scam in fighter jet purchase deal.
This means Dassault has not yet formally conveyed to Centre the role of Reliance Defence as its Indian offset partner. Centre said that till Oct 2019 no offset partner can get any money under agreement from India. The government also submitted the details of the agreement relating to induction of Indian offset partners by Dassault and the company fitting weapons to the aircraft.
In the submission, the Centre said that the UPA era's 2013 Defence Procurement Procedure (DPP) was "fully complied" with for the defence deal.
The documents said the Indian Negotiating Team was constituted which conducted negotiations with the French side for about an year and approval of the Cabinet Committee on Security, being the Competent Financial Authority, was taken before signing the Inter Government Agreement on September 23, 2016.
About Rafale Controversy
January 2016, India confirmed order of 36 Rafale jets in defence deal with France and under this deal, Dassault and its main partners - engine-maker Safran and electronic systems-maker Thales - will share some technology with DRDO (Defence Research and Development Organisation) and some private sector companies and HAL under the offsets clause.
Nearly one- and-half years after Prime Minister Narendra Modi announced the proposal during a visit to Paris, finally in September 2016, India signed an inter-governmental agreement with France, dubbed as "Rafale deal", in which India will pay about Rs 58,000 crore or 7.8 billion Euros for 36 off-the-shelf Dassault Rafale twin-engine fighters. About 15 per cent of this cost is being paid in advance. As per the deal, India will also get spares and weaponry, including the Meteor missile, considered among the most advanced in the world.
In November 2016, however, a political warfare over the Rafale deal began and the Congress accused the government of causing "insurmountable loss" of taxpayers' money by signing the deal worth Rs 58,000 crores. It also claimed that the Anil Ambani-led-Reliance Defence Ltd. had been unfairly picked to be the French firm's Indian partner. The Congress alleged that the cost of each aircraft is three times more than what the previous UPA had negotiated with France in 2012.
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Price of Rafale aircraft a national secret says Rahul Gandhi.
The court told the Centre that it should state in an affidavit the "difficulty" in sharing the information on pricing.
NEW DELHI: Continuing his attack on Prime Minister Modi , Congress President Rahul Gandhi on Saturday took a dig at him, saying the price of the Rafale Aircraft was a "national secret" as the government was not even willing to reveal it in the Supreme Court.
"The PM knows. Anil Ambani knows. Hollande and Macron know. Every journalist now knows. Defence Ministry babus know. All of Dassault knows. All Dassault's competitors know. But the price of the Rafale is a national secret that cannot be revealed even to the Supreme Court," Gandhi.
"The PM knows. Anil Ambani knows. Hollande and Macron know. Every journalist now knows. Defence Ministry babus know. All of Dassault knows. All Dassault's competitors know. But the price of the Rafale is a national secret that cannot be revealed even to the Supreme Court," Gandhi.
His attack comes in the wake of a media report that claimed the price per Rafale aircraft that the government agreed in 2016 with French company Dassault for 36 fighters is 40 per cent higher than what Dassault had offered in 2012, in a global tender for 126 medium multi-role combat aircraft (MMRCA).
Quoting two senior defence ministry sources, who were directly involved in contract negotiations with Dassault from 2012 onwards, the report by Ajai Shukla in Business Standard claimed that Dassault's winning bid amounted to euro 19.5 billion for 126 Rafale fighters. This amounted to euro 155 million per aircraft, while 36 Rafale aircraft were contracted at euro 7.85 billion which is equivalent to euro 217 million per aircraft -- 40 per cent higher than the earlier contract.
The Supreme Court on Wednesday had sought more information from the government on the Rafale jet deal, including details of its pricing and its deemed advantages.
Quoting two senior defence ministry sources, who were directly involved in contract negotiations with Dassault from 2012 onwards, the report by Ajai Shukla in Business Standard claimed that Dassault's winning bid amounted to euro 19.5 billion for 126 Rafale fighters. This amounted to euro 155 million per aircraft, while 36 Rafale aircraft were contracted at euro 7.85 billion which is equivalent to euro 217 million per aircraft -- 40 per cent higher than the earlier contract.
The Supreme Court on Wednesday had sought more information from the government on the Rafale jet deal, including details of its pricing and its deemed advantages.
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When India will get Rafale:
BENGALURU: The first Rafale fighter jets will be delivered to India in 2019 and France is in discussions to assist in the domestic next generation Advanced Multirole Combat Aircraft (AMCA) as part of the offset obligations of the fighter jet deal, Dassault CEO Eric Trappier has said. The French side, however, feels that a larger order of close to 200 Rafale jets would be ideal to transfer high-end technology and manufacturing capabilities to India at a “competitive level”.
Answering a query by ET, Trappier said Dassault is ready to assist India with its fighter jet programmes. "We have already discussed with Indian agencies and have proposed that our capabilities be integrated. We have started the discussions as part of the offset framework, Trappier said, adding that the company is keen to partner India for the project.
The Dassault CEO made a strong case for the Rafale for an upcoming Indian Navy requirement for carrier borne jets, saying the Rafale is the only jet with dedicated air force and naval versions. "We want to continue beyond the 36 jets on order. The requirement is around 200 jets for India and a naval order as well," he said.
Answering a query by ET, Trappier said Dassault is ready to assist India with its fighter jet programmes. "We have already discussed with Indian agencies and have proposed that our capabilities be integrated. We have started the discussions as part of the offset framework, Trappier said, adding that the company is keen to partner India for the project.
The Dassault CEO made a strong case for the Rafale for an upcoming Indian Navy requirement for carrier borne jets, saying the Rafale is the only jet with dedicated air force and naval versions. "We want to continue beyond the 36 jets on order. The requirement is around 200 jets for India and a naval order as well," he said.
Dassault, however, believes that the current order of 36 jets would not be sufficient to transfer high-end manufacturing or technology to India. Trappier said extra orders would need to be placed by 2017-18 to come up with a larger Make in India plan that would involve shifting heavy work.
On choosing Reliance Defence to be a major offset partner, Dassault said its main Indian partner in the past - HAL - was busy with several projects like the light combat aircraft and the choice was to go with a new entrant into the defence field
On choosing Reliance Defence to be a major offset partner, Dassault said its main Indian partner in the past - HAL - was busy with several projects like the light combat aircraft and the choice was to go with a new entrant into the defence field
"We were told that HAL was fully booked. We talked to Reliance and they were very keen to create such capabilities in India. They have a track record and the financial capability as well," Trappier said. Dassualt said there would be other Indian partners as part of the offset programme also as the company does not have an exclusive agreement with Reliance.
The Indian Air Force has made it clear that it needs much more of the medium combat jets in the Rafale category over the coming years. The air force has said India requires 200-250 more aircraft in the middle weight category of fighters that the Rafale falls into. Global aviation giants like Dassault, Airbus, Boeing and Saab are closely watching Indian moves to select a combat aircraft for a new fighter production line.
The Indian Air Force has made it clear that it needs much more of the medium combat jets in the Rafale category over the coming years. The air force has said India requires 200-250 more aircraft in the middle weight category of fighters that the Rafale falls into. Global aviation giants like Dassault, Airbus, Boeing and Saab are closely watching Indian moves to select a combat aircraft for a new fighter production line.
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