The News Scroll 27 July 2018  Last Updated at 9:25 pm | Source: PTI

Rafale deal biggest example of crony capitalism by Modi govt: Cong (Eds: Adding Rahul's comments)

Rafale deal biggest example of crony capitalism by Modi govt: Cong (Eds: Adding Rahul's comments)
outlookindia.com
1970-01-01T05:30:00+0530

New Delhi, Jul 27 The Congress today mounted a fresh attack on the Modi government over the Rafale jet deal calling it the "biggest example of crony capitalism" and alleged that "national interest" was compromised with by helping a private entity to the tune of crores of rupees in violation of rules.

Chief spokesperson of the party Randeep Surjewala said Prime Minister Narendra Modi must give answers to the nation on the deal and the Congress wants him to speak on this issue in Parliament during the current monsoon session.

Rahul Gandhi also took a jibe at Modi over the deal, alleging that the joint venture of "Mr 56's friend" received "USD 20 billion actual benefits" through offset contracts in the deal, equivalent to Rs 1,30,000 crore.

Surjewala alleged that the Modi government is "deceiving" the country by not giving answers about award of offset contract to a private player to the tune of Rs 130000 crore in this "mother of all defence deals".

The government has been rejecting all allegations about the Rafale deal.

The Congress leader told reporters that shocking revelations have brought out lies of Defence Minister Nirmala Sitharaman about the award of Rs 30,000 crore 'defence offset contract' to Reliance Defence as part of this deal.

The Congress president put out a tweet using the hashtag "130000CroreRafaleScam", saying, "Dear Trolls, I apologise for my earlier tweet in which I stated Mr 56's friend's JV, received 4 Billion US$'s of 'off set' contracts.

"I forgot to add the 16 Billion US$ RAFALE “lifecycle” contract. 20 BILLION US$, is the actual benefit. So Sorry!!"

Surjewala alleged that the "culture of crony capitalism is the DNA of the Modi government. It is truer than ever in case of the Rs 60,145 crore Rafale deal."

"The art of deceiving India is the Modi government's mantra in this mother of all defence deals. Intrigue, conspiracy, deception and loss to public exchequer have marred the unilateral purchase of 36 Rafale aircrafts by the government," he said.

"Rs 1,30,000 crore lies is being peddled by Modi government. Reliance Defence has claimed to have secured the offset contract from Dassault Aviation (maker of Rafale jets) for Rs 30,000 crore and a consequent 'lifecycle cost contract' of Rs 1 lakh crore," he said.

The Congress leader said even Dassault Aviation in its annual report for 2016-17 has claimed that offset contract is being executed by Reliance, while the defence minister has claimed that the offset contract has not been awarded by Dassault Aviation.

"The simple question is, who is lying – Defence Minister Nirmala Sitharaman or Reliance/Dassault Aviation?," he asked.

Citing rules, he said all offset proposals need approval by Defence Minister and the offset contract is to be countersigned by the ‘Acquisition Manager' of the Defence Ministry.

He alleged that the defence offset contract went to a private company with zero experience of manufacturing fighter aircrafts. Besides, Reliance Defence was formed just 12 days before the announcement of purchase of 36 Rafale aircrafts by the prime minister in France on April 10, 2015 and did not have a licence, he said.

A Reliance firm was given licence to manufacture fighter aircrafts by the Defence Ministry but it did not own any land or building on the date of the licence on February 22, 2016, Surjewala said, adding the company was formed 14 days after the announcement.

This, he said, was done after suddenly denying the biggest ever defence offset contract to Hindustan Aeronautics Limited (HAL), which signed Rs 36,000 crore offset contract by a ‘Workshare Agreement' on March 13, 2014 till PM Modi 'unilaterally' announced an ‘off-the-shelf' purchase of 36 Rafale aircrafts.

Surjewala alleged there was "mal-intent" of the prime minister and complete surrender of the defence minister vis-a-vis the interest of the only government company having experience of manufacturing fighter aircraft.

"Does the prime minister represent the interest of private companies and private industrial houses or is his duty and obligation to protect an existing signed contract between an experienced government company," the Congress leader asked.

He also questioned whether Sitharaman was not aware that the French defence minister met her and told her that she was going to Mehan where Maharashtra's BJP government gave land to Reliance Defence for a joint venture for offset contract.

"It only shows that the national interest was being compromised by the Prime Minister and Defence Minister of India," Surjewala said, while alleging that guidelines on defence contracts have been violated.

He also cited a rule that a contract should be audited by the Defence Ministry.

"Why are Prime Minister Modi and Defence Minister Sitharaman lying on the issue? It is time for Prime Minister Modi to answer to the nation," he said.

Surjewala cited an earlier press release from Reliance, claiming it quoted 7.87 billion Euros (over Rs 60,000 crore) as the cost of the Rafale deal after India and France signed a purchase agreement for supply of 36 Rafale fighter jets on September 23, 2016.

"The contract includes a 50 per cent offset obligation to the tune of approximately Rs 30,000 crore, which is the largest ever offset contract in the history of India. DRAL (Dassault Reliance Aerospace Limited) will be a key player in execution of offset obligations," he quoted Reliance as having said.

Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds.
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