15 November 2017

Pin It

Rafale Deal is it Biggest scam or Dassault fooled BJP Government in Rafale Deal

Rafale Deal is it Biggest scam or Dassault fooled BJP Government in Rafale Deal

First congress party decided to buy Medium Multi-Role Combat Aircraft as Indian Air Force needs them.

As IAF needs the combat aircraft congress party started bidding process in year 2007
After bidding process, finally Dassault won the bidding in 2012 to provide 126 Rafales at US$ 10.2 Billion, 18 jets to be provided ready-to-fly and rest 108 to be Made in India by HAL (Hindustan Aeronautics Limited) via technology transfer.
Dassault was supposed to invest 50% revenue from this deal into India itself

20.08.2007 – UPA-Congress government floats a tender for purchase of 126 ‘Medium Multi Role Combat Aircrafts’ (MMRCA) for Indian Air Force. Post negotiations, two aircrafts remained in reckoning i.e. ‘Rafel’ and ‘Eurofighter Typhoon’.

12.12.2012 – Rafel emerged as L-1 vendor with base price of US$ 10.2 billion (Rs. 54,000 crore as per 2012 conversion rate). Out of 126, 18 Aircrafts would come in fly away condition with remaining 108 Aircrafts being manufactured in India by HAL with transfer of technology. In addition, there was a 50% offset clause requiring the Dassault Aviation to invest 50% of the sale price by way of investment in India.

13.03.2014 – Work share agreement was signed between HAL and Dassault Aviation. 70% work of 108 Aircrafts to be made in India was to be done by HAL and 30% by Dassault.

Former PM Manmohan Singh got best deal for India.
Few details of deal which Former PM Manmohan Singh got for India
1-Number of Planes - 126
2-Total Contract -  10.2 billion US dollars
3-Cost per plane – 81 million US Dollar
4-Technology Transfer – Yes
5- Dassault was supposed to invest 50% revenue from this deal into India itself
6- HAL is Public sector company
7- HAL was to manufacture 108 air crafts in India

Why Former PM Manmohan Singh got the best deal from Dassault
Reason - Dassault was ready to give anything to India for this contract as Dassault was on verge of becoming bankrupt company and future of France as a defense supplier would have become minimal, negligent.
Dassault failed to export Rafales to Brazil and UAE also.

Honorable Former PM Manmohan Singh strictly told Dassault that without technology transfer India will not buy the aircrafts from them and result Dassault agreed.

Rating of contract – 5 stars out of 5 stars

Year 2014 – Congress party lost the elections and Narendra Modi became the Prime Minister of India.

10.04.2015 – Prime Minister, Shri Narendra Modi visits France and announces the deal for purchase of 36 Rafel Fighter Aircrafts in flyaway condition. This was done unilaterally without following the Defense Procurement Procedure, without inter-governmental agreement and in absence of India’s Defense Minister.
However, Shri Anil Ambani, owner of Reliance Defense Limited was present in France with PM Modi.

30.07.2015 – Modi government cancels the earlier RFP for procurement of 126 Fighter Aircrafts.

23.09.2016 – Modi government signs the deal for purchase of 36 Rafel Fighter Aircrafts of Dassault for US$ 8.7 billion as per information in public domain.

03.10.2016 – Reliance Defense Limited of Shri Anil Ambani ties up with Dassault Aviation of France for a joint venture for defense production in India.

February 13, 2012 – media reported Reliance enters defense manufacture with Rafale maker
According to a statement by the French company: 'Dassault Aviation, a major player in the global aerospace industry, has entered into an MoU with Reliance Industries Ltd, India's largest private sector company, for pursuing strategic opportunities of collaboration in the area of complex manufacturing and support in India.'

Both Reliance and Dassault will have to inform the ministry of defense about the tie-up, since such ventures have to be cleared by the government before they get into actual on-ground partnership.

16.02.2017 – Reliance Defense Limited through its subsidiary Reliance Defense and Aerospace Limited inks a joint venture with Dassault Aviation for defense production. Company’s website R. Infra reflects that they are undertaking offset obligations of 30,000 crores with Dassault Aviation for 36 Rafel aircrafts. Copy of their document is attached as Annexure A-1.
This means that the total cost of 36 Rafel Aircrafts being purchased by Modi government is Rs. 60,000 crore.

After becoming PM, Narendra Modi cancelled the deal contract which was done by the Congress party former PM Manmohan Singh.
I never understood why PM Narendra Modi, BJP cancelled the excellent five-star deal.

PM Modi started new process and talks with Dassault and France.

BJP PM Narendra Modi signed new deal with Dassault
Below are the details of new contract with Dassault
1-Number of Planes - 36
2-Total Contract -  8.74 billion US dollars
3-Cost per plane – 243 million US Dollar
4-Technology Transfer – No

One cannot buy a single pin for the three Armed Forces without adhering to the Defense Procurement Procedure
In short what is procedure of buying for defense
1-Properly tendered
2-put to DPP
3- goes to committee
4-committee approves it
5-then price negotiations start
6- then procurement can take place

On the question if this is a scam, Shri Surjewala said let the Prime Minister answer and place these facts on the record. We have raised serious issues of impropriety, serious issues of non-transparency, serious issues of violations of defense procurement procedure, serious issues of promotion of interest of a particular industrial group by Prime Minister bypassing the most important Public Sector Undertaking, serious issue of denial of Transfer of Technology, the crucial Technology in the biggest ever defense deal to the Indian people and all these are questions and all these are doubts that the Prime Minister needs to answer to.

On a question on whether Dassault is still bound to transfer technology, Shri Surjewala said tragically No. That is the saddest part. Dassault is no longer obliged to transfer technology to manufacture this aircraft to either to HAL or to any other entity in India

For Prime Minister Shri Narendra Modi, did forego this requirement completely and that is why our question - why should we not have this crucial technology to manufacture this aircraft with us? Why should Prime Minister not protect the interest of our own country? That is a question that he will have to answer - Maybe he has valid reasons, but he has to say.

The agreement has also taken place now on 23.09.2016.
You can say that I have bought it at this price – this Rs. 8.7 Billion figure, is actually a figure that are picked up in public domain, based on information supplied by Defense Minister’s or the people close to him or the Defense Ministry official’s.
If you actually now look at the document from the Reliance Website, the price would come even to more than 8.7 Billion because they are saying that they have got off-sets of Rs. 30,000 crore. If the off-sets are Rs. 30,000 crore and they are 50% of 36 aircraft pricing, then that means the deal is Rs. 60,000 crore. No rocket science on that. The off-sets are 50%. If it is Rs. 60,000 crore, it would even be more than Rs. 8.7 Billion.

Transfer of Technology to a Public-Sector Undertaking like HAL was the foundation of this deal. As Government changed, Prime Minister Mr. Modi sacrificed Transfer of Technology as the first step and I do not think that was in the interest of the country.

Modi government is indulging in an unforgivable game of compromising ‘National Interests’ and ‘National Security’. A ‘huge Scam’ is brewing in the procurement of fighter aircrafts for Indian Air Force. Grave apprehensions and claims of insurmountable loss being caused to public exchequer are in public domain with the government maintaining a conspiratorial silence.

Complete non-transparency, flagrant violation of the mandatory provisions of ‘Defense Procurement Procedure’, sacrificing the National Interests on ‘Transfer of Technology’ to a government PSU i.e. Hindustan Aeronautics Limited (HAL) and blatant promotion of financial interests of ‘crony capitalist friends’ of Prime Minister have marred the purchase of 36 ‘Rafel Fighter Aircrafts’ by Modi government from the ‘Dassault Aviation’ of France.
Time for Prime Minister, Shri Narendra Modi and the government to answer to people of India –

Why is Modi government buying 36 Rafel Aircrafts at a highly-inflated price compared to the originally negotiated base price by UPA-Congress government?

Is it correct that UPA government negotiated 126 Rafel Aircrafts at a base price of US$10.2 billion with transfer of technology?

Is it also correct that Modi government is buying 36 Rafel Aircrafts without transfer of technology for US$ 8.7 billion?

Does it not mean that 126 Rafel Aircrafts would have cost US$ 30.45 billion (without transfer of technology) at the price arrived at by Modi government?

Is it not then correct that per aircraft pricing of Rafel as per UPA negotiation comes to US$ 80.95 million (Rs.526.1 crore) as against Modi governments per aircraft negotiated price of US$ 241.66 million (Rs.1570.8 crore) as per current exchange rate?

Who is responsible for loss to exchequer?

How did Prime Minister take a unilateral decision on buying the 36 aircrafts of Dassault by-passing the mandatory ‘Defense Procurement Procedure’ and in absence of an inter-governmental agreement with France at that time?

Why has Modi government forgone transfer of technology for the defense acquisition ever in favor of a public sector undertaking i.e. HAL, more so when the former Defense Minister had publicly stated about possibility of buying more Rafel Aircrafts in future?

 Why did Prime Minister, Shri Narendra Modi promote the interests of one industrial group i.e. Reliance Defense Limited, which has led to the company tying up and entering a joint venture with Dassault Aviation worth Rs. 30,000 crore? Why was this done by Prime Minister bypassing the interests of a reputed public sector undertaking like HAL?

Why has the joint venture for the biggest-ever Indian defense deal between Dassault Aviation and Reliance Defense Limited not gone through the proper procedure of approval by the Union Cabinet, Cabinet Committee on Security and Foreign Investment Promotion Board?

Now as Indian citizens you have to decide is it a biggest scam in history of India or one company fooled the BJP government.

BJP government contract to buy Rafale is not good for India.
Hope someone will file PIL in Supreme Court of India and sees that the deal gets cancelled.
zero stars for Rafale Deal Contract.

Reality views by sm –

Wednesday, November 15, 2017

Tags - Rafale Deal Scam Reliance Dassault 36 aircrafts