Flying in the face of the demand for transparency (CAG report on Rafale)

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 Flying in the face of the demand for transparency (CAG report on Rafale)

Read more on - Polity | Economy | Schemes | S&T | Environment


    • CAG report on Rafale : The Rafale fighter aircraft deal is called an "Inter-Governmental Agreement - IGA" between France and India. That nomenclature is difficult to understand. 
    • What happened earlier : The previous govt. took out a global tender, and shortlisted two aircraft - Dassault's Rafale (French), and Eurofighter Typhoon (made by 4 European nations). Rafale price bid was lower than that of Eurofighter. Hence, 126 aircraft were then to be purchased. Of these, 18 were to be made by Dassault, and 108 by HAL and Dassault.
    • Not a G-to-G contract : Since it was a global tender, it could not be a Government-to-Government contract at all. Those are done without floating global tenders.
    • March 2015 statement : CEO of Dassault said that the deal with HAL was 95% complete. But that deal was scrapped and it was decided to buy 36 aircraft directly, keeping HAL away. Dassault was to make the supply, but it is still being called an IGA.
    • A new deal altogether : The 36 jets deal became practically a whole new deal, contrary to the DPP (Defence Procurement Procedures). The PMO was now involved in the negotiations, thereby undermining the DPP. So the DAC (Defence Acquisition Council) too was out of the loop.
    • What is the deal, exactly : The deal is not an IGA, and definitely not a G-to-G contract, because a private firm Dassault is supplying the aircraft and not the French govt. They have in fact refused to guarantee the supply of aircraft.
    • Changes made : The Gurantee for Supplies was replaced by a "Letter of Comfort" which is not enforceable legally.
    • CAG report : The pricing conclusion (new deal 2.8% cheaper) is not a thoroughly analysed fact. The decision to acquire 36 aircraft is not explained, nor is ignoring the DPP 2013 elaborated upon. The criticism of previous govt. on choosing Rafale is perplexing as the present govt. also chose the same.
    • Summary : Certain aspects of the CAG report on the Rafale purchase deal need a closer examination.
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                                                                                                                                              PT's IAS Academy: Flying in the face of the demand for transparency (CAG report on Rafale)
                                                                                                                                              Flying in the face of the demand for transparency (CAG report on Rafale)
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