Rafale deal not govt-to-govt pact, says Kapil Sibal

The Congress on Wednesday alleged that the deal is not a “government-to-government” pact between India and France as is being suggested by the government.

It said the Centre should not have signed the contract with Dassault alleging that it was a “non-complaint” vendor as it had not given assurances on aircraft quality and on man-hours required for manufacture of the jets.

The Congress, however, did not ask the government to scrap the contract.

Addressing a press conference, senior Congress leader Kapil Sibal claimed France has never done a government-to-government contract on defence. “This is not a government to government contract. Dassault should make a public statement if they ever had a Government to Government contract prior to this. In fact, there is no such procedure in France,” he said.

“In this case… the people who negotiated the deal were Dassault representatives along with Eric Trappier himself…. That is on the side of Dassault and on the Indian side Ministry of Defence and Air Force officials negotiated the deal. The only thing that happened was that the Government of France gave a confirmation letter. The negotiations were done by Dassault. How could it be a Government to Government contract?” he asked.

Sibal claimed Dassault was a non-compliant vendor.

“In the bid that Dassault gave, it provided the number of hours to be taken for manufacture of 108 aircraft…. The HAL had opposed that figure and said the man hours that you are claiming is wrong…. It had said it will take almost three times the number of man-hours. Actually the exact is 2.74. Dassault was asked to back its claim by providing an affidavit or an undertaking. Dassault refused to give either the affidavit or the undertaking and under Government of India procedures Dassault became non-complaint.

“Had they given the total number of hours, it would have been L-2. Therefore, they did not give that affidavit. Once it became non-compliant, Government of India cannot have any contract with Dassault,” he said.

He said the government had also asked Dassault to take “full responsibility for the production, quality and performance of the 108 aircraft” but it flatly refused.

Source: Indian Express

Modi Compromised National Security, Hiked Prices of Rafale Jet Deal to Favor Anil Ambani’s Reliance Defence: Congress

The Congress on Thursday alleged that Prime Minister Narendra Modi had enhanced and hiked the benchmark price for for the Rafale fighter jet deal from 5.2 billion Euros to 8.2 billion Euros and discarded objections by one of his own ministries on the sovereign guarantee issue.

It said the “entire spectrum of deception” on the deal “lies at the doorstep of the Prime Minister”, The Indian Express claimed in a report.

The CPI(M), too, hit out at the government demanding a Supreme Court-monitored SIT probe into the deal.

The Congress communication department head Randeep Surjewala claimed that the negotiating team had “a serious dispute” on the benchmark price, which was referred to the then Defence Minister Manohar Parrikar.

Manohar Parrikar refused to hike prices of Rafale

“Parrikar as also the Defence Acquisition Council (DAC) headed by the Defence Minister and the chiefs of the three armed forces also didn’t agree and could not decide on the higher benchmark price of € 8.2 Billion. So DAC referred it to Cabinet Committee on Security (CSS) headed by the Prime Minister. PM Modi as the head of the CCS accepted the higher benchmark price without any negotiations or inquiry. Why did the Prime Minister set a higher benchmark price,” Sujrewala asked.

The Law Ministry had on December 9, 2015 “flagged the issue of “No Bank Guarantee/ Sovereign Guarantee” by the French Government and noted the concern that the contract involves huge payouts from the public exchequer without actual delivery in the form of advance payments.

The then Defence Minister Parikkar, Surjewala claimed, had in March 2016 refused to “opine of accepting the Letter of Comfort in lieu of bank-French government guarantee. The Air Acquisition Wing of the Defence Ministry, on the other hand, had put up a note in August of that year stating that “Bank Guarantees may be insisted from French side as required under our procedure and Indian side may bear the Bank Guarantee charges.”

Modi Waved Off Bank Guarantee

He said the Law Ministry reiterated its view and conveyed it again to the Defence Ministry on August 24, but the “very next day, PM Modi as head of the CCS accepted the ‘Letter of Comfort’ and waived off the condition of ‘Bank Guarantee/French Government Sovereign Guarantee’.”

“Why did PM Modi compromise national interests by waiving the Bank Guarantee/French Government’s Sovereign Guarantee’ in violation of Defence Procurement Procedure?” he asked. The Congress has alleged that all this was done only to favour one company Reliance Defence which is headed by Anil Ambani and levelled charges of crony capitalism on the BJP Central Govt.

On Wednesday, Attorney General K K Venugopal had told the Supreme Court no “sovereign guarantee” was given by the French government but it had issued a “letter of comfort” that was good enough to be “governmental guarantee”, according to a report in The Hindu.

Defence Minister Parrikar refused to accept Letter of Comfort

Sujrewala also claimed that Mr. Parrikar had refused to accept the “letter of comfort” in place of a sovereign/bank guarantee and cited an August 18, 2016 note in which the Air Acquisition wing of the Defence Ministry stated, “Bank Guarantees may be insisted from French side as required under our procedure and Indian side may bear the Bank Guarantee charges”.

CPM general secretary Sitaram Yechury said the government’s own admission in the Supreme Court that there is no sovereign guarantee from the French government but only a letter of comfort which is not legally enforceable to ensure the delivery of this high-value contract was sensational.

with inputs from The Hindu & Indian Express