Rafale contract received from Dassault, not Defence Ministry, clarifies Anil Ambani's Reliance

Agencies
August 12, 2018

New Delhi, Aug 12: Caught in a political storm over the Rafale fighter aircraft deal, billionaire Anil Ambani's Reliance Group on Sunday denied receiving any contract from the Defence Ministry and said "unfounded and incorrect" allegations are being deliberately made to "mislead people and cloud the issue."

Answering questions ranging from lack experience to state-owned HAL being overlooked for the deal, the group said Dassault, the French firm that is to supply 36 Rafale fighter jets, chose Reliance Defence Ltd to meet its 'offset' or export obligation in the contract and the Ministry of Defence has no role in the selection of Indian partners by the foreign vendors.

Reliance Defence Ltd CEO Rajesh Dhingra said the government-to-government deal requires all 36 aircraft to be delivered in a 'fly-away' condition which means "they are to be exported from France by Dassault" and "HAL or anyone else cannot be the production agency for the simple reason that no aircraft are to be produced in India."

He said HAL was a nominated production agency for the 126 Medium Multi-Role Combat Aircraft (MMRCA) program, which never reached the contract stage.

"Reliance Defence or any other Reliance group company has not received any contract from the MoD till date, related to 36 Rafale aircraft. This is absolutely unfounded and incorrect," he told PTI over phone.

Opposition Congress party last week demanded a JPC in the deal and its president Rahul Gandhi has been attacking the government for inking the deal at a much higher price than the one the previous UPA regime had negotiated. He has accused the government of changing the deal to benefit "one businessman".

On allegations of the firm getting the contract because of Ambani's reported proximity with Prime Minister Narendra Modi, he said: "As per Defence Procurement Procedure (DPP), the Ministry of Defence has no role in the selection of Indian partners by the foreign vendors. This has been the position right from 2005 when offsets were first introduced in the country."

In the more than 50 offset (export obligations) contracts signed in the country till date, the same process has been followed, he said. "Therefore, this is a deliberate attempt to mislead people and cloud the issue."

On the issue lack of experience in making fighter aircraft, Dhingra said no company in India, except HAL, has the experience of making fighter planes. "This would mean that we will never create any new capability beyond what exists and will continue to import more than 70 per cent of our defence hardware," he said.

Dhingra added that Reliance will be participating in the offset program through Dassault Reliance Aerospace Ltd (DRAL) in which Dassault holds a 49 per cent stake bringing in its 90 years of aerospace manufacturing experience, making it the "most qualified vendor".

He termed as "absolutely wrong" allegation of Reliance benefiting with a Rs 30,000 crore contract, saying "Dassault's share of offsets is about 25 per cent, with the remaining offset obligations being shared by Thales, Safran, MBDA and others."

"Therefore, the basic premise of Dassault giving Rs 30,000 crore worth of offset contracts to Reliance is totally unfounded," he said, adding Dassault and its other Tier-I suppliers have already indicated more than 100 Indian companies which will participate in the offset contracts. This includes joint ventures with PSUs like HAL and BEL.

"We can also not lose sight of the fact that up to 30 per cent of total offsets can be discharged through transfer of technology to DRDO, as per DPP," he said.

Asked about Reliance Defence being incorporated days before the announcement of the Rafale deal, he said three companies were incorporated in December 2014 and Reliance Group's entry into defence sector was announced at Aero India in February 2015.

"Also there are reports in the media of as late as end-March 2015 where Dassault officials were on record to say that the MMRCA deal is 95 per cent done. If this is correct, what is the linkage with the date of incorporation of Reliance Defence?" he asked.

The deal to buy 36 Rafale fighter jets was signed when Prime Minister Narendra Modi visited France in April 2015.

On the question of presence of Ambani at the time of announcement of the deal by the Prime Minister, Dhingra said Anil Ambani is part of the CEOs' Forum for France and also many other countries.

"He was in Paris because there was a meeting of the CEOs' Forum on the sidelines of the Prime Minister's visit. More than 25 other CEOs from the Indian companies were also present, including the Chairman of HAL," he said.

Offset obligations are to be discharged during September 2019 to September 2023, as per the contract.

Asked about allegations that Reliance actually got contracts worth Rs 1.3 lakh crore and not Rs 30,000 crore, he said the amount may be coming from projections of Rs 30,000 crore for offsets and another Rs 100,000 crore towards the lifecycle cost over 50 years.

"There cannot be anything further from truth... To the best of my knowledge, the government has not signed any lifecycle contract for 50 years with Dassault. Therefore, the very question of Reliance getting a contract does not arise," he said.

On the issue of Defence Minister Nirmala Sitharaman denying knowledge of the contract, he said as per DPP 2016, the foreign vendor has a choice to submit the details of its offset partners at the time of claiming offset credits.

"In this case, offset obligations are due only after September 2019. It is, therefore, possible that the Ministry of Defence has no formal communication from Dassault Aviation about the choice of its partners for the offsets," he said.

Asked if it was correct that under DPP a joint secretary-level official is required to countersign the contract, he said: "The offset contract is signed between the MoD and the foreign vendor. MoD does not sign any contract with the Indian offset partners."

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News Network
May 27,2020

Muzaffarpur, May 27: A toddler's vain attempt to wake up his dead mother from eternal sleep on a railway platform in Bihar's Muzaffarpur on Wednesday presented the most poignant picture of the massive migrant tragedy unfolding across several states.

A video tweeted by Sanjay Yadav, an aide to RJD leader Tejashwi Yadav, shows the child walking unsteadily up to his mother's body, tugging at the blanket placed over her, and when failing to wake her up, covering his own head with it.

As the mother still lay still, he wobbles away from her, announcements continuing in the background about the arrival and departure of trains that would bring in tens of thousands of people in a rush to get away from hunger and hardship they face in large cities that could sustain them no more.

"This small child doesn't know that the bedsheet with which he is playing is the shroud of his mother who has gone into eternal sleep. This mother died of hunger and thirst after being on a train for four days. Who is responsible for these deaths on trains? Shouldn't the opposition ask uncomfortable questions?" tweeted Yadav.

However, police had a different story to tell.

Ramakant Upadhyay, the Dy SP of the Government Railway Police in Muzaffarpur, said the incident occurred on May 25 when the migrant woman was on way to Muzaffarpur from Ahmedabad by a Shramik Special train.

He told reporters the woman, who was accompanied by her sister and brother-in-law, had died on the Madhubani bound train.

"My sister-in-law died suddenly on the train. We did not face any problem getting food or water," the officer said, quoting the deceased's brother-in-law who he did not name.

He said on getting information, poice brought down the body and sent it for postmortem.

Citing the brother-in-law of the deceased, Upadhyay said she was aged 35 years and was undergoing treatment for "some disease" for the last one year in Ahmedabad. "She was also mentally unstable," he said.

When persistently queried about the cause of death, he said,"Only doctors can tell".

A massive exodus of migrant workers is on in several parts of the country, unprecedented in magnitude since Partition.

The humanitarian crisis still unfolding on highways and railway platforms has shone light on disturbing tales of entire families walking hundreds of kilometres with little children on foot in a seemingly endless march to escape hunger.

People have been found travelling on trucks and in the hollow of concrete mixing plants, and in many cases, dying from hunger and exhaustion before reaching their destinations.

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Agencies
January 4,2020

New Delhi, Jan 4: In more troubles for the former Finance Minister and senior Congress leader P Chidambaram, the Enforcement Directorate (ED) on Friday questioned him for over six hours in its probe into the Air India aircraft deal case, first time since his release from Tihar jail almost a month ago.

A senior ED official told IANS, "We questioned Chidambaram for over six hours today in the ongoing probe into the Air India deal with Airbus."

According to financial probe agency officials, Air India had planned to buy over 111 aircraft from Airbus and Boeing during the erstwhile United Progressive Alliance (UPA) government in 2009. This is the first time the ED has questioned the senior Congress leader in the Air India deal case.

The questioning of Chidambaram came for the first time since his release from the Tihar jail where he spent 106 days in connection with the INX Media money laundering case. He was released from Tihar on December 4 last year after he was granted bail by the Supreme Court. The former finance minister is also being investigated by the ED in a separate money-laundering cases of Aircel-Maxis deal.

An ED official said the contract to buy 43 aircraft from Airbus was finalised by a panel of ministers headed by Chidambaram in 2009. According to the ED, when the proposal to buy 43 aircraft from Airbus was sent to the Cabinet Committee on Security (CCS), there was a condition that the aircraft manufacturer would have to build training facilities and MRO (Maintenance, Repair and Overhaul) centres at a cost of Rs 70,000 crore. But later, when the purchase order was placed, the clause was removed.

The name of another UPA minister, Praful Patel, had also come up in the alleged scam in a charge sheet filed by the ED against corporate lobbyist Deepak Talwar on March 30 last year. Talwar was arrested last year by the ED after he was deported from the UAE.

The ED is probing the Air India-Indian Airlines merger; purchase of 111 aircraft from Boeing and Airbus at Rs 70,000 crore; ceding profitable routes and schedules to private airlines, and opening of training institutes with foreign investment.

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News Network
June 16,2020

New Delhi, Jun 16: Jet fuel or ATF price on Tuesday was hiked by 16.3 per cent while petrol price was increased by 47 paise per litre and that of diesel by a record 93 paise on the back of firming international oil rates.

Aviation turbine fuel (ATF) price was hiked by ₹5,494.5 per kilolitre (kl), or 16.3 per cent, to ₹39,069.87 per kl in the national capital, according to a price notification by state-owned oil marketing companies.

This is the second straight increase in ATF price this month. Rates were hiked by a record 56.5 per cent (₹12,126.75 per kl) on June 1.

Simultaneously, petrol and diesel prices were hiked for the 10th day in a row.

Petrol price in Delhi was hiked to ₹76.73 per litre from ₹76.26, while diesel rates were increased to ₹75.19 a litre from ₹74.26, the price notification said.

In 10 hikes, petrol price has gone up by ₹5.47 per litre and diesel by Rs 5.8 a litre.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The hike in diesel rates is the highest daily increase since the state-owned fuel retailers started daily revision in rates in May 2017.

Hike for 10th consecutive day

Tuesday’s increase in petrol and diesel price marks the 10th straight day of rise in rates since oil companies on June 7 restarted revising prices in line with costs, after ending an 82-day hiatus.

The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) instead of passing on the excise duty hikes to customers adjusted them against the fall in the retail rates that was warranted because of fall in international oil prices.

The June 1 hike in jet fuel price had come after seven consecutive reductions in rates since February. ATF price in Delhi before the reduction cycle began in February was ₹64,323.76 per kilolitre, which got reduced to ₹21,448.62 last month.

Industry officials said the hike was necessitated because benchmark international rates have bounced back from a two-decade low.

While ATF prices are revised on 1st and 16th of every month, petrol and diesel prices are revised on a daily basis.

Oil companies used to revise ATF prices on the first of every month, but adopted fortnightly revisions on March 21 to pass on the benefit of falling international oil prices to airlines.

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