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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Agencies
July 20,2020

Mumbai, Jul 20: The Bombay High Court on Monday asked the NIA and the Maharashtra government to inform it about the health condition of poet Varavara Rao, an accused in the Elgar Parishad-Maoists links case, and if his family could be allowed to see him "from a reasonable distance".

The directions came after Rao's lawyer told the court that the activist was "almost on his deathbed".

Rao, 81, is currently admitted in the Nanavati Hospital here. He tested positive for coronavirus earlier this month and is also suffering from several other ailments.

A division bench of Justices S S Shinde and S P Tavade asked the National Investigation Agency (NIA) and the state to inform the court about Rao's health condition and clarify by July 22 whether his family members could be permitted to see him.

Rao's lawyer Sudeep Pasbola told the court that the activist was "almost on his deathbed" and that if he were to die, it should be in the presence of his family.

"His condition is very serious. He hit his head against the hospital bed while he was at the J J hospital and sustained severe injuries. Besides COVID-19, he suffers from several ailments, he is hallucinating and is delirious," Pasbola said.

"His days are numbered and if he is to die, at least let him die in the presence of his family members," the lawyer said while seeking that Rao be granted bail. Pasbola said Rao was in no condition to cause any prejudice to the probe in the case and even the NIA could not dispute this fact.

The bench, however, asked if Rao was in such a critical condition, wouldn't it be counterproductive to move him out of the hospital, and take him to any other place? "Also, if he has COVID-19, then how can he meet his family?" the court asked.

To this, Pasbola said if permitted, Rao's family could take precautions, and see him from a distance. The state's counsel, Deepak Thakare, told the high court that it could arrange for video-conferencing facilities for Rao's family.

Additional Solicitor General Anil Singh, who appeared for the NIA, said as far as he knew, "COVID-19 patients could not be permitted to meet anyone". He also said Rao had been admitted to "one of the best multi-speciality hospitals in the city," and that he was being taken care of in accordance with guidelines of the Indian Council of Medical Research (ICMR).

"We are providing the best treatment to him, all his medical needs are being attended to and we are following ICMR guidelines in treating him for COVID-19," Singh said. The court, while seeking details from the NIA and the state, said, "Can his family members see him from a reasonable distance in the hospital?"

Rao earlier filed two pleas in HC through his lawyer. One was to direct the state to produce all his medical reports from the state-run J J Hospital, where he was admitted in May but discharged hurriedly on June 2 and sent back to Taloja jail in neighbouring Navi Mumbai.

The other plea sought bail on health grounds.

The same bench also heard a petition filed by Rao's co-accused in the case, activists Vernon Gonsalves and Anand Teltumbde, seeking that they be tested for COVID-19 as they had been in close contact with Rao in the jail.

The court directed the prison authorities and the NIA to respond to the plea by July 23. "The prayer in the petition is limited. You (authorities) carry out the test for COVID-19 and see. If they are negative then good," the court said.

It noted that they (Gonsalves and Teltumbde) are lodged in the Taloja jail where there have been cases of inmates testing positive for coronavirus. Besides, the hearing on the plea of activist Sudha Bharadwaj, also an accused in the case, seeking bail on health grounds was adjourned after the court found the Byculla women prison superintendent's report on her health to be "illegible".

Her plea will also be heard on July 23.

Bharadwaj has been in jail since September 2018. She applied for bail on health grounds after an inmate at the Byculla prison tested positive for coronavirus last month.

Rao and nine other activists were arrested in the Elgar Parishad-Maoist links case, which was initially probed by the Pune Police and later transferred to the NIA.

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News Network
March 4,2020

Mar 4: Prime Minister Narendra Modi said on Wednesday that he has decided not to participate in any 'Holi Milan' programme as experts have advised reducing mass gatherings to avoid the spread of coronavirus.

"Experts across the world have advised reducing mass gatherings to avoid the spread of COVID19 Novel Coronavirus. Hence this year, I have decided not to participate in any 'Holi Milan' programme," the PM tweeted.

This year, Holi is on March 10.

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News Network
February 16,2020

Varanasi, Feb 16: Amidst continuing protests against the amended citizenship law, Prime Minister Narendra Modi on Sunday said his government stood by the decision despite all pressure.

"Be it the decision on Article 370 or the Citizenship Amendment Act, it was necessary in the interest of the country. Despite pressure, we stand by our decision and will remain so," he said.

Modi was addressing a public meeting in his Lok Sabha constituency.

Prime Minister Narendra Modi also asserted that the trust set up for construction of the Ram temple in Ayodhya will work "rapidly".

"A trust has been formed for construction of a grand Ram temple in Ayodhya. This trust will work rapidly," he said at a public meeting during his day-long visit to his Lok Sabha constituency.

The government had recently set up the Shri Ram Janmabhoomi Teerth Kshetra on the Supreme Court's directive to the Union government to form a trust that can look into the construction and management of the temple.

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