PM Modi is Not Chowkidar but Baghidar in Rafale Deal – Jaiveer Shergill
Mangaluru: “Rafale Deal stinks of BJP’s Corruption, BJP’s Rafale deal has shot down transparency, make in India and Technology transfer. Rafale deal is a copybook case of squandering “National Interests” causing loss to the public exchequer and promoting a culture of “Crony Capitalism” at the cost of public sector undertaking. Art of deceiving India is the Mantra of Modi government in the biggest defence deal of Independent India. Caught lying, Modi government is indulging in a brazen cover-up exercise. Modi is not the Chowkidar but a bhagidar in the Rafale deal”, said the spokesperson of Indian National Congress Jaiveer Shergill in a press meet held at the DCC office here on August 27.
Addressing the mediapersons Jaiveer said, “Rafale Scam Rs 41,205 crore Loss of Public money by purchasing a Rs 526 crore aircraft for 1670 crore. Per aircraft price of Rs 126 Rafales as per international bid opened on 12th December 2012, during UPA Congress government comes to Rs 526.10 crore per aircraft. 18 aircraft were to come in flyaway condition from France and 108 aircraft were to be made in India by public sector undertaking, Hindustan Aeronautics Ltd with “Transfer of Technology’. At this price, 36 aircraft would have cost Rs 18,940 crore”.
Jaiveer further briefed that on April 10, 2015 PM Modi announced emergency ‘off-the-shelf’ purchase of 36 Rafale aircraft in Paris, France for Euro 7.5 Billion (Rs 1670.70 crore per aircraft) i.e Rs 60,145 crore for 36 aircraft. This price is apparent from ‘Annual Report 2016’ of Dassault Aviation and from the press release of Reliance Defence Limited. Will PM Modi explain as to why an extra amount of Rs 41,205 crore is being paid from public money? Jaiveer questioned.
Briefing on the Rafale deal Jaiveer said, “No Secrecy in disclosing the ‘Purchase Price’- PM caught lying in Parliament. While PM and Defence Minister refuses to divulge the inflated price of 36 Rafale aircraft claiming ‘secrecy clause’, the agreement between India & France has no such clause on non-disclosure of the commercial purchase price. Price stands disclosed by Dassault Aviation and Reliance Defence Ltd. Moreover, Congress-UPA had disclosed the price of Dassault Aviation made MIRAGE aircraft, as also Sukhoi aircraft and other Defence purchases on the floor of the Parliament. What is the Prime Minister and Defence Minister, then hiding? Does the refusal to tell the price not reek of a ‘Scam’?
Why did PM Modi reduce the number of fighter aircraft required for Indian Air Force from 126 to 34? First of the 36 Rotates will come in September 2019 and last aircraft by 2022 i.e. 8 years after the decision to purchase in April, 2015. With looming threats from China and Pakistan, does it not compromise ‘National Security’ and defeat the ’emergency purchase’ argument?”
CCS by-passed ‘Defence Procurement Procedure’ violated and Transfer of Technology’ surrendered.
As PM Modi announced the purchase of 36 Rafale aircraft on 10 April 2015.
(i) No mandatory prior approval of ‘Cabinet Committee on Security’ was taken at the time of announcing the purchase of 36 Rafale aircraft on 10th April 2015.
(ii) Mandatory requirement of ‘Defense Procurement Procedure’ for ‘Price Discovery’ through the instrumentalities of ‘Contract Negotiation Committee’ (CNC) and ‘Price Negotiation Committee’ (PNC) were not followed by the PM.
(iii) ‘Transfer of Technology’ to PSU, HAL for the manufacture of Rafale aircraft in India was also sacrificed by PM Narendra Modi.
Rs 36,000 Cr ‘Offset Contract’ snatched from PSU – Hindustan Aeronautics Limited. Reliance gets ‘Defence Offset Contract’ of Rs 30,000 Cr & ‘Life Cycle Contract’ of Rs 1,00,000 Crore.
The public sector undertaking HAL entered into a work share agreement dated 13 March 2014 with Rafale-Dassault Aviation worth Rs 36,000 Cr for ‘offset contract’ during CPA-Congress Govt.
Post the announcement of the unilateral purchase of 36 Rafale aircraft by PM Modi in France on 10 April 2015, HAL was by-passed. In the biggest instance of ‘Crony Capitalism’, ‘Offset-Contract’ worth 30,000 Cr was given to a private company i.e. Reliance Defence Ltd. (Please See Annual Report 2016 of Dassault Aviation as Annexure A1, Press Release of Reliance Defence as Annexure A.2 and Investor Presentation of R Infra as Annexure A5)
Why did Modi government allow the Offset contract worth Rs 30,00 crore to be given to a company that had zero experience of manufacturing fighter aircraft, bypassing the Public Sector Undertaking, HAL, which is the only company in India with decades of experience in manufacturing fighter aircraft?
Reliance Infra and Reliance Defence Ltd. now also claim to have secured an additional Rs 1 Lakh Cr of ‘Lifecycle Cost Contract’ over and above the Rs 30,000 Crore’offset contract’. Had the Rafale fighter aircraft been manufactured by public Sector Undertaking HAL, the ‘Lifecycle Cost Contract’ would have automatically gone to HAL.
Why has PM Modi offered a bounty of Rs 1,30,000 Cr worth of defence contract for a private company, by-passing the PSU, HAL?
Has ‘Chowkidar’ become ‘Bhaghidar’ – Rs 1,30,000 Crore contract within 12 days of forming the Company?
Reliance Defence Ltd. (which got the offset contract from Rafale-Dassault Aviation for Rs 30,000 Cr) was incorporated on March 28, 2015, i.e. 12 days before the announcement of the purchase of 36 Rafale aircraft by PM in France on 10th April 2015. They also claim to have a Rs 1,00,000 Crore ‘Life Cycle Cost’ contract.
This unusual act of benevolence tells a unique story of PM Modi’s ‘Crony Capitalism’.
Defence Minister lies to the nation on Rs 30,000 Crore’ offset contract deal’.
On February 12, 2018, Defence Minister issued a PIB Press Release wherein she said that ‘no offset contract has been awarded’. This is falsified by Press Release and Investor Presentation of Reliance as also ‘Annual Report, 2016’ of Dassault Aviation. The biggest lie of the Defence Minister, Nirmala Sitharaman, qua no allotment of ‘offset contract, is exposed by the French Defence Minister herself. On October 27, 2017, French Defence Minister met Sitharaman in New Delhi in the morning and laid the foundation of Reliance factory in the afternoon to execute offsets in Nagpur, along with Nitin Gadkari, Devendra Fadnavis and Anil Ambani. What is being hidden by Modi Government in the award of Rs 30,000 Crore ‘Offset Contract’?
PM and Defence Minister deliberately ignore 20% ‘price reduction offer’, refuse ‘fresh bidding’ for the lowest price
In the originally invited tender by UPA-Congress, two fighter aircraft were found equal on all technical fronts i.e. ‘Rafale’ and ‘Eurofighter Typhoon’. In the financial bid, Rafale became L1. Eurofighter Typhoon admittedly wrote a letter dated July 4, 2014, to the then Defence Minister, offering to reduce the price by 20%. Once PM Modi had decided to make a fresh purchase, should both companies i.e Rafale and Eurofighter Typhoon not have been asked to bid afresh through ‘Inter-Governmental Agreement’ (IGA) route so as to arrive at the lowest price in favour of the public exchequer? Why did PM Modi violate this cardinal principle that would have benefited India’s public treasury?
Disclaimer: The views and opinions expressed in the above article are solely those of Indian National Congress Spokesperson Jaiveer Shergill. Mangalorean.com does not assume any responsibility or liability for the same.