Rafael deal controversy - All you need to know

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  • October 4, 2018 8:23 PM
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The Rafale Deal Controversy is An Indian political controversy that is related to the purchase of 36 multirole fighter aircraft for an estimated price Rs 58,000 crore (7.8 billion dollar) by The Defence Ministry of India from France's Dassault Aviation

Background
On 27 April 2012 Indian Ministry of defense open a contest to select multi-role fighter aircraft for Indian air force.

Boeing F/A-18E/F Super Hornet, Dassault Rafale, Eurofighter Typhoon, Lockheed Martin F-16 Fighting Falcon, Mikoyan MiG-35, and Saab JAS 39 Gripen participated in this contest.

Dassault Rafale and Eurofighter Typhoon were shortlisted for final negotiation. Rafale was the lowest bidder with 3% inflation rate annually.

Dassault Rafale had won the Medium Multi-Role Combat Aircraft (MMRCA) competition project as announced by Indian Ministry of Defence on 31 January 2012.

126 aircraft along with an option for 63 additional aircraft were to be supply to Indian Air Force in MMRCA deal with Dassault.
The first 18 aircraft were to be supplied by Dassault Aviation in fly away condition and the remaining 108 aircraft were to be manufactured under license by Hindustan Aeronautics Limited (HAL) with transfer of technology from Dassault.

Remember one thing the fly away condition means fighter jets were not ready for battel they can only fly like other aircarft but can not take part in air to air or air to ground fight.
These jets were to be modified according Indian air force requirement, that means modification cost was not the part of deal that India need to spend.

The fact is that at that time deal was not done only negotiation was going on.


Why this took almost a decade.
The negotiations with Dassault was halt due to disagreements on warranty for aircraft produced by HAL. India wanted Dassault to take responsibility for the quality of aircraft produced by HAL, but Dassault refused to do so.
In January 2014, Reports said that the cost of the deal had escalated to $30 billion, with each aircraft costing $120 million.

In February 2014, defence minister A. K. Antony given a statement that the procedure of calculation of life-cycle cost need to re-examined and the contract could not be signed in fiscal year 2013-14 due to budgetary constraints.

In April 2015,While Indian prime minister Narendra Modi was on his official France visit, He announced that India would acquire 36 fully built Rafales citing "critical operational necessity".

In July 2015, Tender for 126 aircraft had been withdrawn and negotiations for 36 aircraft had begun.

In January 2016, A memorandum was of between India and France to understanding for acquisition of 36 aircraft.

In September 2016, India and France signed an inter-governmental agreement (IGA) for the acquisition of 36 aircraft at a cost of €7.87 billion.


Allegations
Indian National Congress made allegations on Indian business magnate Anil Ambani's Reliance Defence Ltd of getting the part of the contract by unfair means.

In response, Anil Ambani sued on Congress Party for defamation.




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