Famous Controversy of India

(Rafale Deal)

In September 2016, India signed an inter-governmental

agreement with France, dubbed as "Rafale deal", in
which India bought 36 off-the-shelf Dassault Rafale
twin-engine fighters for a price estimated to
be Rs. 58,000 crore or 7.8 billion Euros.
 The billion dollar deal

The deal was initially estimated to be worth Rs 54,000 crore. NDA government has
insisted that it got significantly better terms than those quoted in the original bid
under UPA, with a total reported saving of more than 1600 million Euros (350 million
Euros on the cost of aircraft with a further reported saving on weapons, allied
maintenance and training package amounting to a around 1300 million Euros or Rs
12,600 crores). However, a cost breakdown of Rafale in the original bid under UPA
and in the 36 aircraft in the government-to-government deal under NDA are not in
the public domain.
 At a glance
[2007]
A proposal to buy Medium multi-role combat aircraft (MMRCA) is sent from Air Force to government.
Tenders for 126 MMRCA fighters are issued by Indian government.
[2011]
Mukesh Ambani led Reliance group incorporated a new company named Reliance Aerospace
Technologies Ltd. (RATL) in 2008. Air Force shortlists Rafale and Eurofighter jets in 2011

[2014]
Negotiations over pricing, technology, weapon system, customisation and maintenance continued.
Workshare agreement between HAL and Dassault Aviation is signed.Although UPA deal never went
through
[2016]
NDA deal, Defence ministry officially withdraws 126 aircraft deal tender (UPA deal) by 2015, NDA sign
the final deal for 36 Rafale jets for euro 7.87 billion According to this deal, the delivery of jets would
start from September 2018.
[2017]
While Congress party continued with its allegations allegedly favouring Anil Ambani's Reliance at the
cost of HAL, said that his company received the joint venture contract directly from Dassault and
Government had no role to play in it.
Timeline
 Why India need Rafale Jets
Many international aviation manufactures expressed interest when they got
know about the Indian government's plan to revamp its IAF fleet by
introducing Multi-Role Combat Aircrafts.
IAF conducted technical and flight evaluations and in 2011, declared that
Rafale and Eurofighter Typhoon had met its criteria.
 Reliance Aerospace Technologies Ltd (2008)
Dassault entered its Rafale jet into the fray for the India’s
Medium Multi Role Combat Aircraft contract on August 28,
2007. At that point, Dassault is said to have initiated talks with
the Tata group for a partnership.

The large quantum of offsets – 50% of the deal value –

prompted all contenders, including US aircraft makers Boeing
and Lockheed Martin, to look for private Indian companies
that could take on large-value orders.
Insiders said that after Tata decided to go with a US partner,
Dassault opened talks with the Mukesh Ambani-led Reliance,
which was considering entering the aerospace sector. A new
company, Reliance Aerospace Technologies Ltd. (RATL), was
incorporated on September 4, 2008.
 Relaince Defence LTd.
Dassault chose to go with Anil Ambani-led
Reliance Defence, which was incorporated on
March 28, 2015, days before the new deal was
announced in Paris. Sources told ET that the
partnership with Reliance Defence was influenced
by the original talks held with Mukesh Ambani.
The biggest chunk of the new offsets plan – to set
up a Falcon executive jet.
Rafale Deal Controversy Won't Dent Air Force's Image
The image of Indian Air Force will not be dented due to the
controversy over the Rafale fighter jets deal, said Air
Marshal Raghunath Nambiar, the deputy chief of IAF. The
opposition Congress has challenged Prime Minister
Narendra Modi to participate in a debate over the details
of the Rafale fighter jets deal signed with the French
government.
 TRANSFER OF TECHNOLOGY

• The Congress has claimed that under the UPA deal, the Rafale had agreed
to transfer of technology while under the Modi government's agreement,
there is no such binding on the French company. Nirmala Sitharaman,
rejecting the charge said that transfer of technology would happen as 126
Rafale fighter jets would be manufactured in India.
• Reports suggest that the need for reworking the Rafale deal arose as the
French company refused to share its technology with the HAL saying that
the Indian firm was not equipped to handle its technology of the fighter
jets. This development happened after the exit of UPA government.
• The new Modi government insisted that Rafale Dassault must take
responsibility of maintaining quality standards of the fighter jets. Rafale
was not ready to accept the condition necessitating a revisit of the terms
and conditions negotiated during UPA government.
• Now, IAF chief Dhanoa has said that "technology may not be going to the
Hindustan Aeronautics Ltd (HAL) but it is coming to the Defence Research
and Development Organisation (DRDO) and then to a lot of Indians."
 Congress says deal gone haywire
In November 2017, Congress alleged a 'huge
scam’ in Rafale fighter jets deal. Saying that the
contract violated the procurement procedure,
the Congress party blamed the government for
promoting of 'crony capitalist friends’ at the cost
of a defence public sector unit, Hindustan
Aeronautics LimitedNSE -1.06 %.

Congress alleged that the deal signed with

France does not cater for technology transfer
and has caused an 'insurmountable' loss to the
exchequer. The Rafale deal has a 50 percent
offset clause, a large part of which is to be
executed by a joint venture company of the Anil
Ambani owned Reliance Defence.
 Custom-made for India
India has managed to negotiate the acquisition of the latest weapons
package for the Rafale. These are the new weapons, beyond the
standard package.

SCALP: A precision long range ground attack missile that can take out
targets with extreme accuracy. Has a range of 300 km, capped by the
missile technology control regime.

METEOR: A beyond visual range air to air missile that is possibly the
best in its class. Can take out enemy aircraft at range of over 100 km.
 Project Reference
https://www.indiatoday.in/india/story/the-rafale-
timeline-1346534-2018-09-22 ____TIMELINE

https://www.ndtv.com/india-news/what-is-rafale-
deal-controversy-all-you-need-to-know-
1810706_______all you need to know
THANK YOU