What Is Rafale Deal Controversy? All You Need To Know
What is Rafale?
India has 550 Combat Aircraft and have two enemy nations, Pakistan & China. If China & Pakistan wage a war against India at the same time, India needs 800 Airplanes in order to defend.
Importance of Airforce
For the soldiers who are defending on the ground, Airforce plays are a crucial role in the combat. Every country has its own Airforce, so as India known as India Air Force (IAF). In fact, IAF is the 4th largest Airforce in the world.
1980 – we had 800 Airplanes
2001 – we had 700 Airplanes
100 airplanes have become old and have been removed from service. The chief of the staff has informed the government to procure 100 new jets.
The then government led by BJP was asked to submit a report.
Indian Airforce department carried out the investigation and research for 4 years. Unfortunately, India didn’t have the technology to manufacture the Military Jets and had only 2 options:
Either It has to import the jets from other countries or
purchase the technology and manufacture them here in India
In 2005, IAF has submitted the report to the Congress Government which was in power after BJP has lost the elections.
So the Congress has thoroughly studied the report and came up with a beautiful plan.
Import few jets from the other countries
Remaining jets should be Manufacture in India
In 2008, various Aerospace companies were invited to drop the tenders
After evaluating all of them, IAF have selected 2 companies to manufacture the jets meeting all the criteria
DASSAULT Aviation from France
Eurofighter Typhoon from Europe
In 2012, these 2 companies were called for Bidding and of course, whoever bids to manufacture the jets at a lower price wins the deal. In this bidding
DASSAULT Aviation from France wins the Deal
DASSAULT Aviation Deal was for 126 Aircrafts
18 Aircraft will be imported from France
Remaining 108 Jets will be Manufacturer in India
The technology has to be transferred to HAL for manufacture the remaining 108 aircraft in India
The Name of the Aircraft manufactured by DASSAULT is Rafale. That’s how the name RAFALE DEAL originated.
Advantages of the Deal
Indians will get Employment
India can Manufacture its own Aircraft in the Future, as the technology is with us
By 2014 Congress Government failed to put the deal into action and the deal was still under discussion.
France did not agree for some of the conditions made by India and vice versa.
BJP came into Rule in 2014
BJP again revised the deal and concluded to strike a line of balance for the conditions set by both countries.
What we need is more than 200 Aircraft and we don’t even have one. And the deal is still under discussion.
What the hell we gonna do if a war break out?
BJP Govt has decided to scrap the old deal aside and came-up with the new deal
By 2015, we had only 550 combat airplanes and IAF need aircrafts on high priority
All the conditions put together they referred to as OFFSET CLAUSE
2015 Offset Clause
Dassault must invest 50% of its total amount in Indian Defense Companies.
And Since the manufacturing is done in France, they must import 30% of the components from India.
In the deal, 50% of the money is coming back to India which made the Prime Minister settle the discussion and make something happen for REAL
In 2016, DASSAULT has agreed upon all the conditions and the DEAL was SIGNED
The opposition party, Congress Party has questions on the Deal.
2014 – the deal value is 66K Crores & No. of aircraft is 126
2019 – the deal value is 59K Crores & No. of aircraft is 36
in 2014 the price of the aircraft is 560 Cr but
in 2019 the price of the aircraft is 1670 Cr.
In 4 year the aircraft value went up to 1000Crs, WHY?
What kind of Deal is this?
The defense ministry stated that the new deal has
13 specific enhancements demanded by IAF which is not there in the Old Deal
Warranty & Maintenance is not there in the Old Deal
Advanced Weaponry is not there in the Old Deal
As a counter attack to Congress party, the defense ministry stated that
Even if we remove all the extra features and compare just the Aircraft alone it would cost just 450 crores/aircraft in 2019. But according to Congress Deal it was 570 Crores in 2014, when they made the deal.
Congress didn’t agree to this, they have demanded to present all the price details to the public.
BJP government didn’t agree to this as DASSAULT agreement states that no individual components prices to be revealed. In order to respect the national security, BJP is not willing to reveal the price of fighter jet components.
BJP Says- If Congress has to make the same deal today, it would have cost them 70K Crores but we have made it 59K Crores and saved 10K Crores
But Rahul Gandhi Denied it alleging BJP is using public money, SCAM and paying 30K crores to Ambani.
What is OFFSET CLAUSE CONTROVERSY?
How will the deal go to Ambani with ZERO experience who don’t even know how to manufacture a SCREW, on the other side HAL having a lot of experience. For which defense minister replied to check with DASSAULT.
French Government replied – “HAL failed to finish even the existing projects, how do you think we can make a deal with it? We need a company which is committed to TIME & DELIVERY. So we have to start our own company”
So decided to construct a manufacturing company in Nagpur and successfully opened it in 2018. DRAL fulfilled all the conditions set by DASSAULT and the first aircraft will be delivered in October 2019. And the dual aircraft per year basis all the aircraft will be delivery by 2022.
BOTH the deals were very much beneficial to INDIA. but Congress failed to execute it where as BJP successfully executed it quickly
But, if we have to implement the Congress DEAL we had to go through the selection process, price negotiation, manufacturing which might take 8-10 years. Meantime, how many Governments might change and don’t know when the IAF will get the required number of Aircrafts.