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
January 24,2020

Jan 24: India’s economy appears to be shaking off a slump, as activity in the services and manufacturing sectors expanded for a second straight month in December.

The needle on a gauge measuring so-called animal spirits signaled the economy may be taking a turn for the better, as five of the eight high-frequency indicators tracked by Bloomberg News came in stronger last month. The dial was last at the current position in August.

“Animal spirits” is a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action, and the gauge uses the three-month weighted average to smooth out volatility in the single-month numbers.

The nascent recovery would need a helping hand, with expectations building that Finance Minister Nirmala Sitharaman will provide some stimulus when she presents the budget Feb. 1. Official forecasts show the economy is set to expand at 5% in the year ending March 2020 -- the weakest pace in more than a decade.

Here are the details of the dashboard:

Business Activity

The dominant services index rose to the highest level in five months in December as improving new work orders helped boost activity. The seasonally adjusted Markit India Services PMI index climbed to 53.3 from 52.7 in November, helping post a strong end to the calendar year.

India’s manufacturing PMI also rose -- to 52.7 from 51.2 a month ago -- boosted by the fastest increase in new orders since July. A reading above 50 means expansion while anything below that signals contraction.

The uptick in business confidence was accompanied by a rise in inflationary pressures, the survey showed. That trend may keep monetary policy makers from resuming interest-rate cuts anytime soon, leaving most of the heavy-lifting to boost growth with the government.

“The relative stability in macro indicators over the past two months suggests that the worst is behind, but the recovery is likely to be prolonged,” said Teresa John, an economist at Nirmal Bang Equities Pvt. in Mumbai. “Still, sluggish growth and rising inflation indicate that India may well remain in stagflation for most of 2020.”

Exports

Exports remained a laggard, falling 1.8% in December from a year ago. The drag was mainly because of a fall in export of engineering goods, which constitute a third of India’s non-oil exports.

Capital goods imports continued to contract and was lower by 16.5% year-on-year in December after a 22% drop in November. This was the seventh consecutive month of continuous decline, underscoring the weakness in the capex cycle, according to IDFC First Bank.

Consumer Activity

Weakness in demand for passenger vehicles persisted, with local sales falling 1.2% in December from a year ago, according to the Society of Indian Automobile Manufacturers. That capped the worst yearly passenger vehicle sales on record. A Nielsen study on demand for fast-moving consumer goods showed volume growth dropped to 3.5% in the last quarter of 2019 from 3.9% in the same period of 2018.

Funding conditions held out hope, showing considerable improvement in December, according to the Citi India Financial Conditions Index. Credit growth remained tardy though, with demand for loans rising at a slower 7.1% pace from a year ago compared with a nearly 8% growth in November.

Industrial Activity

Industrial output rose for the first time in four months in November. The pick up was broad-based, led by mining, manufacturing and electricity. Mining and manufacturing, in particular, posted a second month of sequential growth. Production of consumer goods also rose after a few months of contraction.

The index of eight core infrastructure industries, which feeds into the index of industrial production, however, declined 1.5% in November from a year ago -- the fourth straight month of contraction. That was on account of shrinking production of electricity, steel, coal, natural gas and crude oil. Both the core sector and industrial output numbers are reported with a one-month lag.

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Agencies
February 20,2020

Kanpur, Feb 20: Inspector general, Kanpur range, has ordered a probe into a woman's allegation that the cops misbehaved with her at Raipurwa police station when she went there with her father to lodge a complaint of harassment and eve-teasing.

The woman posted her complaint on the Twitter handle of Kanpur police.

The woman, 21, alleged that instead of listening to her complaint, Raipurwa cops asked her, "Zyada padh gayi ho, itna advance kisne bana dia hai, tumhare Papa ne?" (You are too educated. Who made you so advanced - your father?)

She further said that instead of taking necessary action on her complaint, the police forced her father to compromise with the accused, the son of her landlord, who harassed her on Monday.

The woman also stated that there were no female cops at the police station and she had to wait for several hours.

"Throughout my presence at the police station, I had to interact with male cops," she tweeted.

Inspector, Raipurwa, Sunil Kumar, however, has denied allegations.

"Her allegations are not true. Both the parties settled the dispute on their own," he said.

IG Range, Mohit Agarwal, meanwhile, said, "I have asked the SSP to initiate a probe in this regard and take action against guilty cops."

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Agencies
May 10,2020

New Delhi, May 10: Congress leader Rahul Gandhi on Saturday demanded that Prime Minister Narendra Modi ensured audit of donations made to the PM-CARES Fund, and to share the details and the money spent with the people.

"The PM-CARES Fund has received huge contributions from PSUs and major public utilities like the Railways. It's important that the Prime Minister ensure the fund is audited and that the record of money received and spent is available to the public," he tweeted.

The #PmCares fund has received huge contributions from PSUs & major public utilities like the Railways.

It’s important that PM ensures the fund is audited & that the record of money received and spent is available to the public.

— Rahul Gandhi (@RahulGandhi) May 9, 2020
His remarks came amid reports that the central government is accumulating a huge sum of money in the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund set up as a corpus to fight novel coronavirus and that the amount spent will not be audited by the Comptroller and Auditor General.

The CAG office had clarified that since the fund is based on donations, it has no right to audit a charitable organisation.

On Friday, Rahul Gandhi told the media that the PM-CARES Fund should be audited and people of the country should know about the donors and the donations made.

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