Exposed: India Paid Inflated Price for Rafale Jets

Exposed: India Paid Inflated Price for Rafale Jets Fri, 09 Mar 2018

Exposed: India Paid Inflated Price for Rafale Jets

The cat is finally out of the bag. It is now clear without reasonable doubt that Narendra Modi government is guilty of compromising national interest and of causing insurmountable loss to the public exchequer. The manufacturer of Rafale jets, Dassault Aviation, has placed in the public domain its "Annual Report 2016", which reveals how the Modi government ended up paying more for the Jets as compared to other countries. A staggering loss of Rs. 12,632 crore was caused to the nation. In 2015, Rafale sold 24 aircraft each to Egypt and Qatar. In the annual report, the price per aircraft sold to Egypt/Qatar is shown as Rs. 1319.80 crore as compared to Rs. 1670.70 crore for the jets sold to India. India is clearly paying an extra price of Rs. 350.90 crore per aircraft or Rs. 12,632 crore for 36 aircrafts.

Further, the Modi government signed the Inter-governmental Agreement (IGA) with France on September 23, 2016. The object behind the IGA was to ensure that India gets the lowest price of Rafale Jets in comparison to other buyers. The inflated pricing places a big question mark on the very sanctity and purpose behind the IGA. 

This revelation only adds to the growing list of questions that the Modi government should answer. Why did the PM violate the mandatory Defence Procurement Procedure? Why did he not take the necessary prior approval of the Cabinet Committee on Security? Why was PSU HAL bypassed in favour of a private entity with negligible prior experience of defence manufacturing? If Eurofighter Typhoon had indeed written to the Finance Minister offering to reduce prices by 20%, why were fresh bids through IGA route not asked for? 

Further, the Defence Minister stated on November 2017 that the 36 Jets were purchased on an "emergency basis". Why is it that despite the "emergency purchase", and the lapse of 35 months, not a single aircraft has been delivered? 

The Modi government can no longer hide behind the veneer of "secrecy agreement" as even French President Mr. Emmanuel Macron is of the opinion that if India needs to disclose some details of the agreement to the Opposition, then the French government would have no objections. What stops Mr. Modi from coming clean? What is he hiding? What is the latest alibi he will come up with?

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