The decision to buy 36 Rafales was taken to address the urgent need of the IAF (Indian Air Force) because the UPA government did not pay any attention to defence preparedness of the armed forces. The UPA was indecisive for 10 years to address this critical necessity of fighters for the IAF.
The Prime Minister understood loss of time and took the government-to-government route for 36 aircraft. The Defence Minister said the Transfer of technology is not economically feasible with just 36 planes, but could have been done with 126 planes. Under the Defence Procurement Procedure it was "allowed to contract a friendly Government to get 36 aircraft in fly away condition at the earliest. The procedure was duly followed.
Sitharaman rubbished allegations saying today that the final agreement for 36 Rafale jets was signed after the approval of the Cabinet Committee on Security, which decides on India's defence expenditure and matters of national security.
"Allegations relating to the Rafale deal are shameful, the deal was finalised following a transparent procedure," said the defence minister. She said that between 2004 and 2014, the UPA govt could not come to a decision on Rafale acquisition.
According to a French diplomat, the contract to buy 36 aircraft had in it
an unusual clause which said that Dassault and its partners would invest
as much as 50% of the cost of the deal in the Indian defence industry
under the so-called offsets clause.
This share of 50% would
“contribute very positively to the development of the defence industry
in India,” he said; these offsets are not only being implemented by
Dassault alone but by associated French companies as well. This in turn
meant that many Indian companies—large and small—would be benefitting
from the pact and not just one company, the diplomat said.
According to the Congress party’s Surjewala, when it was in
government in 2012, it had negotiated with the French to acquire 126
aircraft for $10.2 billion with the transfer of technology. It was
decided that 18 aircraft would come in a flyaway condition while the
remaining 108 would be manufactured in India by the state-run Hindustan
Aeronautics Ltd.
The Narendra Modi-led NDA government that took
office in 2014 cancelled that deal in 2015 and decided to buy 36
aircraft at $8.7 billion without the transfer of technology provision.
According
to Surjewala, private firm Reliance Defence Ltd then tied up with
Dassault Aviation for a joint venture for defence production in India on
3 October 2016, PTI reported. Reliance Defence has denied any
wrongdoing in the matter, calling the allegations “baseless and
unfounded,” according to PTI.
The ruling BJP
rubbished the Congress allegations, claiming it was intended to “divert
attention” as the opposition party’s leaders faced the prospect of being
questioned over alleged irregularities related to the purchase of
Augusta Westland helicopters when that party was in power.
“Modi
government is known for integrity and all its actions are above board,
while the Congress party is synonymous with sleaze, corruption and crony
capitalism,” BJP spokesman G.V.L. Narasimha Rao told PTI.
He claimed that the Congress was raising the issue as one of the chopper scam’s middlemen, Carlos Gerosa, was arrested in Italy last month and the government has been trying to extradite him. Since the development raises the possibility of further investigation, Rao said that “the Congress has made baseless allegations over Rafale deal to divert public attention and to cry political vendetta.”
“None of these stunts will work and the Congress must be ready to answer who took bribes in the AgustaWestland VVIP chopper deal as the money trail is going to become known after the extradition of Carlos Gerosa,” he said, adding that the Modi goverment was known for its integrity.
Anil Ambani’s RDL also asserted that it had done nothing wrong and that Congress’s allegations were “baseless and unfounded”. In a statement, RDL said that its subsidiary Reliance Aerostructure and Dassault Aviation entered into a joint venture – Dassault Reliance Aerospace – through a bilateral agreement. It further said that no approvals from the Union cabinet or cabinet committee on security were needed as the government policy as of June 24, 2016 allowed for 49% foreign direct investment in the defence sector under the automatic route without any prior approval. The joint venture was formed in October 2016 according to the new policy.
Air Chief Marshal B S Dhanoa threw his weight behind the central government over the Rafale aircraft deal, saying the government had negotiated a better deal on Rafale jets than the previous one.
He claimed that the Congress was raising the issue as one of the chopper scam’s middlemen, Carlos Gerosa, was arrested in Italy last month and the government has been trying to extradite him. Since the development raises the possibility of further investigation, Rao said that “the Congress has made baseless allegations over Rafale deal to divert public attention and to cry political vendetta.”
“None of these stunts will work and the Congress must be ready to answer who took bribes in the AgustaWestland VVIP chopper deal as the money trail is going to become known after the extradition of Carlos Gerosa,” he said, adding that the Modi goverment was known for its integrity.
Anil Ambani’s RDL also asserted that it had done nothing wrong and that Congress’s allegations were “baseless and unfounded”. In a statement, RDL said that its subsidiary Reliance Aerostructure and Dassault Aviation entered into a joint venture – Dassault Reliance Aerospace – through a bilateral agreement. It further said that no approvals from the Union cabinet or cabinet committee on security were needed as the government policy as of June 24, 2016 allowed for 49% foreign direct investment in the defence sector under the automatic route without any prior approval. The joint venture was formed in October 2016 according to the new policy.
Air Chief Marshal B S Dhanoa threw his weight behind the central government over the Rafale aircraft deal, saying the government had negotiated a better deal on Rafale jets than the previous one.
Air Chief Marshal B S Dhanoa defended the central government over the Rafale aircraft deal, saying the government had negotiated a better deal on Rafale jets than the previous one. “There is no controversy. What is the controversy, I don’t understand. It is not overpriced. The government has negotiated a very good deal. We have negotiated a better deal than we did with Medium Multi-Role Combat Aircraft (MMRCA). In fact, the price of 36 aircraft is lower than in the MMRCA contract as we are getting 50 per cent off-set and service facility, and I think the government has negotiated a very good deal.”
Asked about “transfer of technology” reportedly being halted under the
new deal, he said earlier “we were purchasing one squadron and were to
manufacture others here, but now we have purchased two squadrons under
‘fly-away’ condition”.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher,
and nine others in the Bombay high court over a 2 October 2014
front-page story that they have disputed. HT Media is contesting the
case.
- MICA air-to-air “Beyond Visual Range” (BVR) interception, combat and self-defence missiles, in their IR (heat-seeking) and EM (active radar homing) versions. The MICA can be used within visual range (WVR) and beyond visual range (BVR).
- HAMMER (standing for Highly Agile and Maneuverable Munition Extended Range) modular, rocket-boosted air-to-ground precision-guided weapon series, fitted with INS/GPS or INS/GPS/IIR (imaging infra-red) guidance kits, or with the upcoming INS/GPS/laser guidance kit.
- SCALP long-range stand-off missile,
- AM39 EXOCET anti-ship missile,
- Laser-guided bombs,
- The 2500 rounds/min NEXTER 30M791 30 mm internal cannon, available on both single and two-seater
- The upcoming METEOR long-range air-to-air missile.
- “Buddy-buddy” refuelling missions can be carried out in portions of the airspace out of reach of dedicated and vulnerable tanker aircraft.
- With its outstanding load-carrying capability and its advanced mission system, the Rafale can carry out both air-to-ground strikes, as well as air-to-air attacks and interceptions during the same sortie.
- It is capable of performing several actions at the same time, such as firing air-to-air missiles during a very low altitude penetration phase: a clear demonstration of the true “Omnirole” capability and outstanding survivability of the Rafale.
It was decided that of the 126 aircraft, 18 would come in fly-away condition and the remaining 108 will be manufactured in India, says Randeep Surjewala.
Rubbishing Congress' charges of wrongdoing in Rafale fighter jet deal, the government clarified that this is a fictitious assumption of a party which sat on the deal for almost a decade ignoring the important national security issues.
Top sources in the security establishment said that the cost of the government-to-government deal with France for 36 Rafale fighter jets was almost 16 per cent lesser than what the previous UPA government is projecting with better weapons and avionics. Prime Minister Narendra Modi, during his visit to Paris in April 2015, announced that India would be buying 36 Rafale fighters from France in an inter-government deal. After five rounds of negotiations, the deal was finally signed by the two defence ministers in Delhi in September 2016 for 36 fighter jets for Rs 58,000 crore.
Congress vice-president Rahul Gandhi terming this deal as a scam has been raising this issue and putting onus of asking questions on this to Prime Minister Narendra Modi. The Congress' communications department head Randeep Surjewala had alleged that the government neglected the interests of public sector Hindustan Aeronautics Limited (HAL) as Dassault Aviation, the manufacturer of Rafale aircraft refused to transfer technology to it and instead entered into an agreement with Reliance Defence.
He also alleged that the aircraft was being purchased at much higher rates than what was decided after the completion of the tender process under the previous UPA government. Surjewala said the UPA government floated a tender on August 20, 2007 for purchase of 126 medium multi-role combat aircraft (MMRCA) for the Air Force and, post negotiations, two of them — Rafale and Eurofighter Typhoon were shortlisted.
On December 12, 2012, Rafale was declared L1 vendor, the bidder whose quotation is the lowest, with base price of Rs 54,000 crore. "It was decided that of the 126 aircraft, 18 would come in fly away condition and the remaining 108 will be manufactured in India by HAL with transfer of technology," Surjewala said.
The government sources also said that the Indian Air Force will get the aircraft with far better long range missiles along with 75 per cent availability at all times as opposed to the present one,w hcih is only 50 per cent. There will also be a guarantee of getting spare parts for the fighter jets for 50 years. Time frame for supplying is also better. Sources added that since one squadron of Rafales as per the earlier tender had to be acquired in fly-away conditions, the govt decided that it would buy two squadrons to meet the bare minimum requirements of the force.
There are 16-18 planes in one squadron. The sources said that now with the Rafale coming in 2019, the Indian Air Force can buy more planes of global standards by doing proper due diligence. The deal made by the NDA government has also ensured that the French provide help for the programme for 10 years, the sources added.
Rahul Gandhi also asked why PM Modi bypassed experienced HAL and gave the deal to AA rated businessman with no defence experience. Reliance Defence said its subsidiary Reliance Aerostructure and Dassault Aviation formed a joint venture - Dassault Reliance Aerospace after a bilateral agreement between two private companies and "the Indian government has no role to play in this".
Reliance Defence claimed that the government policy of June 24, 2016 allows for 49 per cent FDI in the defence sector under the automatic route, without any prior approval.
"No approvals from the Union Cabinet or CCS were required for the formation of the aforesaid joint venture company under the automatic route," it said, brushing aside the Congress' charge that Prime Minister Modi promoted interests of a group.
Sources said that as of now there is a deficiency of fighter aircrafts and the gap needs to be filled. The government is not responsible for an offset contract between Reliance Aerostructure and Dassault Aviation as this is between private company and vendor.
Sources also justified the urgency to buy the fighter aircrafts as number of squadrons of IAF fighters had gone down to 33 instead of required 42. The Indian Air Force has repeatedly told the political establishment of requirement of at least 42 squadrons of fighter jets to protect its northern and western borders with China and Pakistan.
The then Defence Minister Manohar Parrikar had flagged this issue with Prime Minister Narendra Modi to urgently address the concerns of IAF commanders.
In another two years, IAF is going to lose another 14 squadrons of MiG 21s and MiG 27s. The IAF banks on British-made Jaguar and French-made Mirage 2000s, Su-30 MKI and MiG 29s. An upgrade of the Jaguar fighters being carried out by HAL has been delayed.
Rubbishing Congress' charges of wrongdoing in Rafale fighter jet deal, the government clarified that this is a fictitious assumption of a party which sat on the deal for almost a decade ignoring the important national security issues.
Top sources in the security establishment said that the cost of the government-to-government deal with France for 36 Rafale fighter jets was almost 16 per cent lesser than what the previous UPA government is projecting with better weapons and avionics. Prime Minister Narendra Modi, during his visit to Paris in April 2015, announced that India would be buying 36 Rafale fighters from France in an inter-government deal. After five rounds of negotiations, the deal was finally signed by the two defence ministers in Delhi in September 2016 for 36 fighter jets for Rs 58,000 crore.
Congress vice-president Rahul Gandhi terming this deal as a scam has been raising this issue and putting onus of asking questions on this to Prime Minister Narendra Modi. The Congress' communications department head Randeep Surjewala had alleged that the government neglected the interests of public sector Hindustan Aeronautics Limited (HAL) as Dassault Aviation, the manufacturer of Rafale aircraft refused to transfer technology to it and instead entered into an agreement with Reliance Defence.
He also alleged that the aircraft was being purchased at much higher rates than what was decided after the completion of the tender process under the previous UPA government. Surjewala said the UPA government floated a tender on August 20, 2007 for purchase of 126 medium multi-role combat aircraft (MMRCA) for the Air Force and, post negotiations, two of them — Rafale and Eurofighter Typhoon were shortlisted.
On December 12, 2012, Rafale was declared L1 vendor, the bidder whose quotation is the lowest, with base price of Rs 54,000 crore. "It was decided that of the 126 aircraft, 18 would come in fly away condition and the remaining 108 will be manufactured in India by HAL with transfer of technology," Surjewala said.
The government sources also said that the Indian Air Force will get the aircraft with far better long range missiles along with 75 per cent availability at all times as opposed to the present one,w hcih is only 50 per cent. There will also be a guarantee of getting spare parts for the fighter jets for 50 years. Time frame for supplying is also better. Sources added that since one squadron of Rafales as per the earlier tender had to be acquired in fly-away conditions, the govt decided that it would buy two squadrons to meet the bare minimum requirements of the force.
There are 16-18 planes in one squadron. The sources said that now with the Rafale coming in 2019, the Indian Air Force can buy more planes of global standards by doing proper due diligence. The deal made by the NDA government has also ensured that the French provide help for the programme for 10 years, the sources added.
Rahul Gandhi also asked why PM Modi bypassed experienced HAL and gave the deal to AA rated businessman with no defence experience. Reliance Defence said its subsidiary Reliance Aerostructure and Dassault Aviation formed a joint venture - Dassault Reliance Aerospace after a bilateral agreement between two private companies and "the Indian government has no role to play in this".
Reliance Defence claimed that the government policy of June 24, 2016 allows for 49 per cent FDI in the defence sector under the automatic route, without any prior approval.
"No approvals from the Union Cabinet or CCS were required for the formation of the aforesaid joint venture company under the automatic route," it said, brushing aside the Congress' charge that Prime Minister Modi promoted interests of a group.
Sources said that as of now there is a deficiency of fighter aircrafts and the gap needs to be filled. The government is not responsible for an offset contract between Reliance Aerostructure and Dassault Aviation as this is between private company and vendor.
Sources also justified the urgency to buy the fighter aircrafts as number of squadrons of IAF fighters had gone down to 33 instead of required 42. The Indian Air Force has repeatedly told the political establishment of requirement of at least 42 squadrons of fighter jets to protect its northern and western borders with China and Pakistan.
The then Defence Minister Manohar Parrikar had flagged this issue with Prime Minister Narendra Modi to urgently address the concerns of IAF commanders.
In another two years, IAF is going to lose another 14 squadrons of MiG 21s and MiG 27s. The IAF banks on British-made Jaguar and French-made Mirage 2000s, Su-30 MKI and MiG 29s. An upgrade of the Jaguar fighters being carried out by HAL has been delayed.
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