You are here: Home » PTI Stories » National » News
Business Standard

Cong raises questions over Rafale deal, BJP hits back

Press Trust of India  |  New Delhi 

Raising questions over the Rafale fighter aircraft deal, the today accused the of having compromised and security while promoting "crony capitalism" and causing a loss to the public exchequer.

The rubbished the allegation, claiming it was intended to "divert attention" as the party bigwigs faced the prospect of being questioned in the AgustaWestland VVIP chopper scandal.


The Congress' communications department head Randeep Surjewala alleged the neglected the interests of public sector Hindustan Aeronautics Limited (HAL) as Dassault Aviation, the french manufacturer of Rafale aircraft refused to transfer technology to it and instead entered into an agreement with Defence.

He also alleged that the aircraft was being purchased at much higher rates than what was decided after the completion of the tender process under the previous

The hit right back, with its spokesman GVL Narasimha Rao claiming that the party was engaging in a "stunt" by raising the Rafale issue as it was scared at the prospect of its top leadership, including the Gandhis, being questioned in the VVIP chopper scam.

He said after the arrest of middleman Carlos Gerosa in Italy last month and his likely extradition to India soon, "the has made baseless allegations over Rafale deal to divert public attention and to cry political vendetta".

"None of these stunts will work and the must be ready to answer who took bribes in the AgustaWestland VVIP chopper deal as the money trail is going to become known after the extradition of Carlos Gerosa," he told PTI.

"Modi is known for integrity and all its actions are above board, while the party is synonymous with sleaze, corruption and crony capitalism," he said.

Surjewala said the floated a tender on August 20, 2007 for purchase of 126 medium multi-role combat aircraft (MMRCA) for the Air Force and, post negotiations, two of them--Rafale and Eurofighter Typhoon remained in the reckoning.

On December 12, 2012, Rafale was declared L1 vendor, the bidder whose quotation is the lowest, with base price of USD 10.20 billion (Rs 54,000 crore according to the conversion rate prevalent then).

It was decided that of the 126 aircraft, 18 would come in fly away condition and the remaining 108 will be manufactured in India by HAL with transfer of techonology, he said.

After the Modi was formed in May 2014, Surjewala said, the earlier Request for Proposal (RFP) for purchase of 126 aircraft was cancelled on July 30, 2015, and signed a deal on September 26 the next year for procurement of 36 Rafale fighter jets for USD 8.7 billion.

Later, he said, Anil Ambani's Defence Limited tied up with Dassault Aviation for a joint venture for defence production in India on October 3, 2016.

"There is complete non-transparency, flagrant violation of mandatory provision of Defence Procurement Procedure, sacrificing on transfer of technology to PSU HAL and blatant promotion of financial interests of crony capitalist friends of the prime minister have marred the purchase of the aircraft," Surjewala alleged.

The leader claimed that each aircraft would have cost Rs 526.10 crore in accordance with the negotiations under the dispensation. Each aircraft would now cost Rs 1570.80 crore, he said, adding "huge" loss was being caused to the exchequer.

Surjewala also alleged that the deal between Dassault Aviation and Defence Limited did not have the approval of the Union Cabinet, Cabinet Committee on Security and Foreign Investment Promotion Board.

"It is time for Prime Minister Narendra Modi and his to answer to people of India as to why is buying 36 Rafale aircraft at a highly inflated price compared to originally negotiated base price by UPA-Congress," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 14 2017. 20:28 IST
RECOMMENDED FOR YOU