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How Corporate rivalry is impacting national interest (Rafale investigation Part I)

IANS  |  New Delhi 

A recent intelligence sharing exercise with has revealed that Lockheed Martin, the US-headquartered company which manufactures the fighter jets, has been up to mischief mongering on the issue.

The jets, which wants, is manufactured by the French company Dassault Aviation, a rival of

That could be working in the shadows to sour the deal for so that it could move in with its own deal was validated when Vivek Lall, Lockheed Martin's high-profile head of strategy and India operations, said that the company was in the process of finalising the sale of 200 fighters to India.

During the UPA regime, the government had signed an MoU for 126 Rafale fighter jets to replenish a shortcoming in air defence preparedness because the did not have quality fighter jets. When the NDA government led by came to power, this deal was revised and an inter-government deal was struck to receive 36 fully-loaded Rafale jets. The controversy now raging in India is related to the pricing for the fighters negotiated by the NDA.

In December when the Rafale case came before the Supreme Court, observed that processes were generally followed over the procurement. He also noted that the controversy had been triggered by comments by former French over the selection of the offset partner and that mere comments could not form the basis for a probe.

However, this has not prevented the Rafale purchase controversy from becoming a high-octane political battle between the party and the

Repeatedly over the past few months and more stridently now in the lead-up to the Lok Sabha elections, has led a no-holds barred attack on the government and the specifically on the issue. From the earlier public disinterest on the controversy, it is now now getting some traction -- the party believes this could be possible because it has relentlessly raised the matter at all public forums.

Bringing up the case of the state-owned (HAL) was said to be part of the orhestrated plan to present the case of the American companies while also appearing nationalistic. In the government's estimate, HAL's record is abysmal and it cannot be given a big responsibility like building fighter jets -- more so in the light of the safety record of MiG fighters purchased from and made under licence from HAL.

The BJP-led government at the Centre believes -- and it is certain it has evidence of this -- that the Congress party is doing this as it has become a party to corporate rivalry between the US and French companies. For the record, is believed to have found a sympathetic ally in another US major, Boeing, which manufactures the Dassault has another rival in French manufacturer Airbus Industrie, which is associated with BAE for the manufacture of the It is also angling for a fighter jet contract with India.

Rahul Gandhi's attacks on the government over the Rafale issue started after his visit to the US in August 2017 when he met several defence lobbyists, CEOs of US defence companies and officials.

has been obtuse in accusing the Congress of becoming a pawn in corporate rivalry. She made the comments during a recent seminar on 'India's strategic interest in the context of the Rafale deal'.

The government's efforts to trace the footprints of the dramatis personae at the forefront of the campaign to target the government over the Rafale deal has produced surprising results. It has found what it believes are eye-opening linkages between Prashant Bhushan, and -- who filed a PIL in the accusing the of corruption in the deal -- and arms dealers and defence manufacturers. At least in one case, the linkages show deep connections between members of Shourie's family with aerospace companies, arms dealers and defence lobbies.

A deeper look found a correlation between the end of Shourie's dreams of being appointed Union and the beginning of his tirade against the Prime Minister on one issue or the other.

The government is also aware of the links between a top BJP leader's and a French manufacturer. The is said to be advising and is believed to be making government documents available to him for the campaign against Rafale.

Lockheed Martin's alleged actions to work the political ecosystem to pull down the Rafale procurement deal also has a larger strategic context. Contrary to popular perception, the is said to be extremely unhappy with India because the NDA government under Modi has been successful in building strong relationships with Saudi Arabia, the and



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

First Published: Thu, February 14 2019. 15:46 IST