Rafale deal not on ‘better terms’ than UPA-era offer

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Three senior Defence Ministry officials who were the domain experts on the seven-member Indian Negotiating Team (INT) came to a well-substantiated and clear conclusion that the Narendra Modi government’s new Rafale deal for 36 flyaway aircraft was not on “better terms” than the offer made by Dassault Aviation during the procurement process for 126 aircraft under the United Progressive Alliance government. They also concluded that the delivery schedule of even the first 18 of the 36 flyaway Rafale aircraft in the new deal was slower than the one offered for the 18 flyaway aircraft in the original procurement process.

Contrary to claims
These findings are directly contrary to the two central claims made by the Indian government of a cheaper deal and faster delivery of fighter aircraft, claims that have been affirmed before the Supreme Court of India in official submissions.

Further, the three officials registered serious concern over the Indian government’s acceptance of a ‘Letter of Comfort’ in lieu of a sovereign or government guarantee or bank guarantees, legal issues relating to the IGA, offset issues, and Dassault Aviation’s restrictive trade practices.

The three domain experts on the INT were M. P. Singh, Adviser (Cost), a Joint Secretary-level officer from the Indian Cost Accounts Service; A.R. Sule, Financial Manager (Air); and Rajeev Verma, Joint Secretary & Acquisitions Manager (Air). They recorded their views in a strong note of dissent, dated June 1, 2016, submitted at the end of the negotiations to the Deputy Chief of Air Staff (DCAS) in his capacity as chairman of the negotiating team.

Rafale deal not on ‘better terms’ than UPA-era offer - The Hindu
 
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