ID :
506017
Tue, 09/25/2018 - 10:51
Auther :

'French Revelation' Worsens India Fighter Jet Deal Row

By Shakir Husain NEW DELHI, Sept 25 (Bernama) -- India began evaluating various options to modernise and expand its Cold War-era fleet of fighter jets more than a decade ago. French company Dassault Aviation was a contender for the multi-billion-dollar contract to supply 126 medium multi-role combat aircraft (MMRCA) to the Indian Air Force. The request for proposal (RFP) was issued to six vendors in 2007. Dassault Aviation's Rafale jet, American firm Lockheed Martin's F-16, Swedish group Saab's Gripen, the Eurofighter Typhoon made by a combination of British, German, Spanish and Italian firms, US-based Boeing's F/A-18E/F Super Hornet, and Russia's MiG-35 were considered. The twin-engine Rafale, serving in the French Air Force since 2006, was selected as the preferred bidder by India in 2012 for a deal potentially worth about US$12 billion. India was to receive 18 aircraft from France in a flyaway condition and the remaining 108 were to be locally assembled. After years of talks on technical details, pricing and a host of other issues, a final deal looked so close that Dassault Aviation chief executive Eric Trappier said in March 2015 that his company and Indian state-owned Hindustan Aeronautics Ltd were "in agreement" on work share for making the planes in India. Then came a big announcement by Prime Minister Narendra Modi when he visited France in April 2015. "I have asked President (Francois Hollande) to supply 36 ready-to-fly Rafale jets to India," Modi told a press conference in Paris. It was reported at that time that the planes were urgently needed to meet the operational requirements as the air force had to phase out its ageing jets. India operates the world's fourth largest air force and in the military's calculations needs 42 fighter squadrons as "the minimum strength necessary" to project power versus both Pakistan and China. The air force's operational strength is reportedly 32 squadrons with each squadron comprising 16 to 18 planes. Difficult negotiations between France and India continued for months over the terms of a government-to-government deal. During Hollande's visit to New Delhi in January 2016, the two countries signed a memorandum of understanding for the Rafale. Finally, the defence ministers of India and France in September 2016 signed the long-awaited agreement for the 36 jets to be delivered within six years. The price tag was 7.8 billion euros (US$8.7 billion). In the 17 months since Modi's Paris announcement and the 2016 deal, the original tender for 126 planes was scrapped and the world's top military jet makers began to look at India anew for a mega aircraft deal. With India among the world's top buyers of weapons, foreign military purchases face close scrutiny. The Modi government's Rafale agreement faced opposition criticism. In recent weeks, however, the Congress-led opposition has intensified its offensive, which has rattled the government. Critics point out India is paying a much higher sum for each aircraft than the price negotiated in the original tender. They also object to billionaire Anil Ambani's new company Reliance Defence being part of the offset agreement with Dassault due to its lack of experience in military manufacturing. The offset deal relates to India's defence procurement rules under which a foreign firm must invest a portion of the contract value within the country. Former French president Hollande's comments on Friday that France didn't have a choice in selecting a local Indian partner to fulfil its offset obligations have added fuel to the row in India. "We did not have a choice, we took the interlocutor who was given to us," Hollande told investigative website Mediapart. Congress president Rahul Gandhi used those comments to target the government with a new harshness. "The PM personally negotiated and changed the Rafale deal behind closed doors. Thanks to Francois Hollande, we now know he personally delivered a deal worth billions of dollars to a bankrupt Anil Ambani," Gandhi said. Much before that "revelation", the Indian government had faced tough questions on why Hindustan Aeronautics was not part of the deal and why it bought only 36 aircraft when the requirement was much bigger. A number of points have been raised about the alleged violation of established procedures for defence procurements. With India's national elections due in 2019, it is a fight with high stakes. The Modi government has deployed its heavyweights to take on the Congress and its associates. Finance Minister Arun Jaitley in a blog countered that Hollande's subsequent statements on the issue contradicted his earlier remarks. "The offset partner is selected entirely by the Dassault Aviation, the original equipment manufacturer, and neither the French Government and nor the Indian Government has any say in the matter," Jaitley said. The Indian Defence Ministry said the government had no role in the selection of Indian offset partner "which is a commercial decision" of Dassault. Other than carefully crafted formal rebuttals and rejoinders, personal attacks and vilification also appear to be legitimate weapons in this fight. If Modi has been a focus of Gandhi's onslaught, the ruling Bharatiya Janata Party (BJP) has unleashed its fury against the Congress president. The acerbity of the words being exchanged can be gauged from a Twitter hashtag that accuses Gandhi's "entire family" of thievery. Those using it include key government ministers. -- BERNAMA

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