All you need to know about Rafale Deal



WHAT  
IS  RAFALE  DEAL?

The  story  begins  from  28th  AUGUST  2007 , when  our defence  minister  accepted  proposal  for  126  MMRCA(medium  multi  role  combat  aircraft   fighter  jets ).  We  needed to buy fighter jets ,so  various  companies  submitted their bids  and in May 2011, two aircrafts  were shortlisted ,1) EUROFIGHTER  TYCOON  2)DASSAULT  RAFALE . Negotiations  started  in January  2012 ,with DASSAULT aviation  for    RAFALE  aircrafts   .The deal  was  to purchase 126  fighter jets  of which  18  were  supposed  to be off the shelf that is they  were supposed to be manufactured  in  France  and  they  would have been  ready  to fly  as  soon as  we  got  them and  the  remaining fighter  jets  were supposed  to be manufactured  in  INDIA by HAL(Hindustan aeronautics limited).

DASSAULT aviation , the French  company was to transfer  its technology  to HAL ,   Using   this   technology , HAL would have manufactured  the  remaining 108 fighter jets.  In  march  2014 ,  DASSAULT  aviation  and  HAL signed a work  share  agreement  which  stated that  70%  of  the  work to manufacture  the 108 aircraft  in INDIA  was  to  be undertaken  by HAL  and rest 30% by  DASSAULT  aviation. The  negotiation  took  long time  as two  companies  could not agree  on  several  points  .  During  this  time  government  changed and  the negotiation  was still not  finalized .  Finally  on  25thy march  2015 , DASSAULT CEO  ERIC TRAPPIER   said  that  the   deal will be signed   soon.

NEW  RAFALE  DEAL (2015)

On   8th  april  2015 , our  foreign  secretary said  that  negotiations among  Indian governments, HAL  and  DASSAULT  are  sill  not  over  and  after  two    days   suddenly on  10th  april  2015 , a joint  statement  was  issued  by the Indian  and  French  government  that  a new  deal  is upcoming. As  per  the  new  deal,  36  RAFALE aircraft were  to be purchased by INDIAN  government  all of which  in fly  away  off the  shelf  condition . Opposition questioned  that  what  happened to the older  deal?, Which  included  108 aircraft  to be manufactured  in INDIA  by HAL. On  13th  april  2015 , then  defence  minister  MANOHAR PARRIKAR said that ,PM  MODI  took the  decision  and I backed  it up . 

 In  new  deal, there  is an offset clause  for  50% of the value ,the deal  is worth  60,000 CRORES  which  means  india  will buy  fighter  jets  from DASSAULT  for  60,000 crore  out  of which  DASSAULT  has  to invest 50% of it that is 30,000 crore  in  INDIA. Technically  it  should  be  upto dassault  to decide  in which INDIAN companies it wants  to invest. On  3rd  October  2016, Anil Ambani’s  Reliance  group  started  a joint venture  with  dassault  aviation  whose  name is  DASSAULT RELIANCE AEROSPACE Ltd. On  21st  june  2017, a report of the HINDU BUSINESS LINE  stated that  of the 30000 crore  offset money, dassault  is planning to invest  21,000 crore in joint venture with RELIANCE group. And this is the reason  why  the  opposition  congress party  repeatedly questioned this  deal  and accused the government  of  favouritism  towards reliance industry. On  21st  September  2018, the controversy  developed  when the  ex. French  president FRANCOIS  HOLLANDE  said that    government  chose  ANIL AMBANI  as  the  offset  partner  and French  government  had no choice of it. But  dassault  responded to it saying that  it choose reliance  on  its   own .

On  13th  September  2018 then defence minister  NIRMALA SITARAMAN  said that  the government  had not  given any suggestion to dassault and they chose reliance on their own.21st  October  2018, dassault  CEO  said that  only 10% of  the offset obligations is  supposed  to go to  reliance and rest to 100 different companies. But  this totally contradicts the report  given  by hindu business line. And due  to  this  contradiction the  controversy caught everyone's eye.

 

PRICING  OF  RAFALE  JETS

The next  controversy  about  the RAFALE  deal is  about its  cost. Congress  spokesperson say that  total  cost   of the  old  deal  was  54,000  crore,  the average  cost for 126  jets  was  526 crore .  Moving  on to  the  new  deal,  the  cost  for the new deal will be  59,000 crore for 36  RAFALE  JETS. That is 1638  crore per plane ! This  creates all the controversies. Congress asks  how the price  per plane jumps  up to  1638 crore  from 526 crore? What’s the  reason  for it?

On  15th  November 2018 , the junior  minister  of  defence  said  in the parliament that as per the new deal the cost per  jet  is 670 crore  but it  increases  to 1638  crore  due to the other weapons and maintenance parts. Government tell us the  basic cost per plane and  cost of deal but did not disclose  the specific details. The  government cite national security  as the reason  for not revealing the details.

SUPREME  COURT  JUDGEMENT

Now  we  come  to  SC  judgement.   On 5th September  2018, SC  asked  central  government  to share  the details  of  rafale  deal . On  12th  November , the central government gave the details to the SC  as  directed. Then  on  14th  December , SC  gave  its verdict. In  the  judgement  it stated  that , “ we find  no  reason  for  any  intervention  by  this  court  on  this  sensitive  issue”. The  case  would  have  ended  here ,  if there were    not  factual  errors in  the SC  judgement.    N.RAM ,  THE  HINDU ,  ex  editor  in  chief has   investigated the reports and exposed it ,because  of  which ,   the RAFALE deal  is  reopened  in SC. And  this controversy keeps moving, but  finally  in  October 2019  INDIA  receives  1st  rafale  jet. And then  in November  2019  SC  dismisses all  the  review  petition on rafale  deals  saying  that  no corruption have  been found. 


- Labhesh Gupta

 

 

 

 


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