Airforce Deputy Chief
calls out Rahul Gandhi’s Rafale mumbo jumbo*
calls out Rahul Gandhi’s Rafale mumbo jumbo*
September 26, 2018
Just a day after Rahul
Gandhi promised justice for IAF soldiers and martyrs, most of whom have been
victims of crashes in planes bought by previous Congress governments and made
by HAL, the Deputy Chief Air Staff has rebutted Rahul Gandhi’s allegations
about the Rafale deal. In an exclusive interview with India Today, Air Marshal
Raghunath Nambiar has cleared the misinformation being spread about the size of
offset business that Anil Ambani led Reliance is getting.
Gandhi promised justice for IAF soldiers and martyrs, most of whom have been
victims of crashes in planes bought by previous Congress governments and made
by HAL, the Deputy Chief Air Staff has rebutted Rahul Gandhi’s allegations
about the Rafale deal. In an exclusive interview with India Today, Air Marshal
Raghunath Nambiar has cleared the misinformation being spread about the size of
offset business that Anil Ambani led Reliance is getting.
Flatly refuting the
allegation of Reliance getting offset business worth ₹30,000 crore in the
Rafale deal, Nambiar said that IAF has been part of the commercial negotiation
for the purchase of MMRCAs, and no single party is getting business of that
much amount, not even Dassault. Making a very significant revelation he said,
“People are perhaps misinformed. We were a part of the commercial negotiations
for Rafale. There is nothing like ₹30,000 crore to any one party. Dassault has
to do offsets to a tune of ₹6,500 crore. Not more than that”. Rahul Gandhi has
been alleging that ₹30,000 has been “stolen from HAL and given away to a given
to a man with no SKILLS in making aircraft”.
allegation of Reliance getting offset business worth ₹30,000 crore in the
Rafale deal, Nambiar said that IAF has been part of the commercial negotiation
for the purchase of MMRCAs, and no single party is getting business of that
much amount, not even Dassault. Making a very significant revelation he said,
“People are perhaps misinformed. We were a part of the commercial negotiations
for Rafale. There is nothing like ₹30,000 crore to any one party. Dassault has
to do offsets to a tune of ₹6,500 crore. Not more than that”. Rahul Gandhi has
been alleging that ₹30,000 has been “stolen from HAL and given away to a given
to a man with no SKILLS in making aircraft”.
It is important to
note that the offset obligation of Dassault is ₹6,500 crore, not ₹30,000 as
being alleged by the Congress party. Many would perhaps wonder how that is
possible since the Rafale deal is around ₹58,000 crore and hence the offset
obligation should ideally be ₹29,000 crore. One could ask why IAF deputy chief
is saying that it is ₹6,500 crore only? The IAF deputy chief’s statements would
mean that the deal with Dassault is worth ₹13,000 crore.
note that the offset obligation of Dassault is ₹6,500 crore, not ₹30,000 as
being alleged by the Congress party. Many would perhaps wonder how that is
possible since the Rafale deal is around ₹58,000 crore and hence the offset
obligation should ideally be ₹29,000 crore. One could ask why IAF deputy chief
is saying that it is ₹6,500 crore only? The IAF deputy chief’s statements would
mean that the deal with Dassault is worth ₹13,000 crore.
To understand this, we
need to know how aeroplanes are purchased. They are not bought as one piece
like a car, but the major components are bought separately from respective
manufacturers which are fitted into the plane by the manufacturer of the
plane.. In case of civilian aircraft, separate deals are signed with aircraft
makers (Boeing, Airbus etc) and engine makers (GE, Rolls-Royce, Pratt &
Whitney etc). In the case of fighter jets, the number of components and their
supplier is much more, and buyers deal directly with them. Apart from the main
airframe, a fighter plane has an engine, weapon systems, missiles, radar
systems, electronic warfare systems, evasion systems, ejection seats etc, all
of which are made by different companies.
need to know how aeroplanes are purchased. They are not bought as one piece
like a car, but the major components are bought separately from respective
manufacturers which are fitted into the plane by the manufacturer of the
plane.. In case of civilian aircraft, separate deals are signed with aircraft
makers (Boeing, Airbus etc) and engine makers (GE, Rolls-Royce, Pratt &
Whitney etc). In the case of fighter jets, the number of components and their
supplier is much more, and buyers deal directly with them. Apart from the main
airframe, a fighter plane has an engine, weapon systems, missiles, radar
systems, electronic warfare systems, evasion systems, ejection seats etc, all
of which are made by different companies.
In case of the Rafale
deal, there are four main suppliers, Dassault, Safran which makes the engine,
Thales which makes several electrical, electronic systems and sensors, and MBDA
which will supply missiles. The jets will carry advance missiles like Meteor
and Scalp, and cutting-edge RBE 2 AESA radar. That’s why Dassault’s share in
the deal is ₹13,000 crore, as the rest amount will be paid to other component
and weapon suppliers. It this, the Thales deal is around $2 billion, and they
have their own offset obligation of $1 billion, or around ₹7,250 crores. The
Rafale will also have several Israeli components, including the Litening pod.
deal, there are four main suppliers, Dassault, Safran which makes the engine,
Thales which makes several electrical, electronic systems and sensors, and MBDA
which will supply missiles. The jets will carry advance missiles like Meteor
and Scalp, and cutting-edge RBE 2 AESA radar. That’s why Dassault’s share in
the deal is ₹13,000 crore, as the rest amount will be paid to other component
and weapon suppliers. It this, the Thales deal is around $2 billion, and they
have their own offset obligation of $1 billion, or around ₹7,250 crores. The
Rafale will also have several Israeli components, including the Litening pod.
All these companies
will have to fulfil their offset obligations. Thales has formed a joint venture
with Reliance Defence, while the company already have a JV with Bharat
Electronics Limited (BEL). Safran has a Joint venture with HAL to make parts
for the engine. Apart from the JV with Reliance, Dassault has signed agreements
with several companies including BEL, L&T, Mahindra etc. Therefore it is
clear that Reliance can’t get ₹30,000 from the deal as Rahul Gandhi alleges.
That is more than the approximate figure Dassault and Thales is receiving in
total, which whom Reliance Defence has JVs. Reliance has already said that its
share in the offset is ₹6,600. According to IAF sources, the share of DRDO in
offset is highest.
will have to fulfil their offset obligations. Thales has formed a joint venture
with Reliance Defence, while the company already have a JV with Bharat
Electronics Limited (BEL). Safran has a Joint venture with HAL to make parts
for the engine. Apart from the JV with Reliance, Dassault has signed agreements
with several companies including BEL, L&T, Mahindra etc. Therefore it is
clear that Reliance can’t get ₹30,000 from the deal as Rahul Gandhi alleges.
That is more than the approximate figure Dassault and Thales is receiving in
total, which whom Reliance Defence has JVs. Reliance has already said that its
share in the offset is ₹6,600. According to IAF sources, the share of DRDO in
offset is highest.
The Air Marshal also added that India has got a better price,
better maintenance terms, better delivery schedule, and a better performance
logistics package in the deal to buy 36 fighter jets
better maintenance terms, better delivery schedule, and a better performance
logistics package in the deal to buy 36 fighter jets
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