Rafale deal Issue Pdf Download – Cost,History,Scam or Not,Full Analysis

Rafale deal Issue Pdf Download – Cost,History,Scam or Not,Full Analysis -The Defence Minister refused to share the price details on Rafale purchase, citing the Security Agreement provisions.

What is the Rafale aircraft?

  • Rafale is a twin-engine medium multi-role combat aircraft.
  • It is manufactured by the French company Dassault Aviation.
  • Dassault claims Rafale has ‘Omnirole’.
  • This is the capability to perform several actions at the same time.
  • Rafale can carry out both air-to-ground as well as air-to-air attacks.
  • It can also carry out interceptions during the same flight.
  • The aircraft is fitted with an on-board oxygen generation system (OBOGS).
  • It suppresses the need for liquid oxygen re-filling or ground support for oxygen production.


Rafale deal Issue Pdf Download - Cost,History,Scam or Not,Full Analysis

Rafale deal Issue Pdf Download – Cost,History,Scam or Not,Full Analysis

How did the deal evolve?

  • Indian Air Force (IAF) raised the requirement for Medium Multi Role Combat Aircraft (MMRCA) in 2007.
  • This was to replace the aging fleet of MiG aircratfs.
  • Tender – Tenders for 126 Medium Multi Role Combat Aircraft (MMRCA) fighters were issued by India in 2007.
  • It was an open competition between companies including Dasault Aviation of France.
  • Dassault was announced as the lowest bidder in 2012.
  • Earlier Deal – Of the 126 jets required, 18 fighters were to be imported in a fly-away condition.
  • Hindustan Aeronautics Ltd (HAL) would manufacture the remaining 108 jets.
  • This was agreed to be with Transfer of Technology (ToT) from Dassault.
  • Stall – India and France were unable to decide on a price for the jets.
  • The workshare agreement between HAL and Dassault Aviation was signed in 2014.
  • But with the new NDA government in place, clarity on the progress of the deal remained unclear.
  • New deal – On PM’s visit to France in 2015, India’s intention to buy 36 Rafale aircraft in “fly-away” condition was announced.
  • Defence Minister announced the previous 126 fighter jet deal to be dead.
  • Subsequently, the deal for the acquisition of 36 aircraft was signed by the Defence Ministers of India and France in 2016.
  • This was done through a government-to-government deal.

What are the present concerns?

  • ToT – The current deal has a 50% offset component.
  • Accordingly, Dassault will manufacture items worth 50% of the deal in India.
  • However, the absence of transfer of technology (ToT) component is raised as an issue.
  • Also, no role is guaranteed for any Indian public sector company, including HAL.
  • Deal – The present deal as direct government-to-government agreement, as against the earlier open tender, is criticised.
  • Also, the 36 fighters are said to be purchased at a much higher price than earlier negotiated.

What is the dispute with sharing price details?

  • Earlier deal – The previous government’s price for 126 aircraft was never finalised, and no contract was signed or executed.
  • Hence, no official figure on the price was ever given.
  • New Deal – Recently, the Defence Minister declined to share the cost of the Rafale fighters under the new deal, with Rajya Sabha.
  • It was said that the price details were “classified information“.
  • This was as per the Inter-Governmental Agreement (IGA) between the Governments of India and France.
  • Accordingly, material exchanged under IGA is governed by the provisions of the Security Agreement.
  • However, in 2016, Minister of State for Defence had shared the price in the Lok Sabha in a written reply.
  • The basic price of each Rafale aircraft was said to be around Rs 670 crore.
  • At the time of its signing, the 36-aircraft deal was said to be worth around Rs 59,000 crore.

What is the Security Agreement?

  • Security – Signed between the two nations in 2008, it has some confidentiality provisions.
  • It relates to Protection of Classified Information and Material in the field of Defence.
  • For any contract or sub-contracting contract with classified information and material, a security annex shall be drawn up.
  • The competent security authority from the information forwarding party shall specify what has to be protected by the receiving party.
  • Renewal – It was specified that the Agreement shall remain in force for a period of 10 years.
  • It shall be renewed by “tacit consent” for new 5-year period.
  • Accordingly, the agreement will continue unless one of the Parties notifies its intention to not renew.
  • This has to be given in writing 6 months prior to the end of the current period of validity.
  • The initial 10-year life of the Agreement signed in 2008, ended on January 24, 2018.
  • It is not clear if it has been renewed by tacit consent by the government.

What is the parliamentary procedure?

  • It has generally been the practice to share the cost of defence deals with Parliament.
  • However, in some cases, the details have been kept secret for reasons of national security.
  • Nevertheless, the government is duty-bound to share the pricing details with Comptroller and Auditor General (CAG) and the Public Accounts Committee (PAC) of Parliament.

Latest Updates October 2018 About Rafael Deal 

  • The Opposition has been accusing the NDA govt. of choosing Reliance Defence over state-run Hindustan Aeronautics Ltd.
  • French media report quoted former French president Francois Hollande as purportedly saying that the Indian government proposed Ambani’s Reliance Defence as the partner for Dassault Aviation in the ₹58,000 crore Rafale jet fighter deal and France did not have a choice.
  • Mr. Modi had announced the procurement of a batch of 36 Rafale jets after holding talks with then French President Hollande on April 10, 2015 in Paris.

Important Links For Study Material And Test Series 

Follow Us On Facebook – Facebook Page 
The Hindu Daily News Paper Important Articles Pdf 
Join StudyDhaba.Com Telegram Channel – t.me/studydhaba
Latest Current Affairs Magazine 2019 Pdf
UPSC Prelims ,Mains ,Optional Study Materials
UPSC Prelims Test Series 2020 Pdf 
UPSC Mains Test Series 2019-2020 
UPSC Optional Test Series 2019-2020 
SSC Study Materials 2019-2020 Pdf 
IBPS Study Material 2019-2020 Pdf
Insurance Exams Free Study Materials Pdf 2019
NEET Exam Free Study Material Pdf 
Latest RRB Study Material Pdf 
Teaching Exams Study Material Pdf 
EContact US  [email protected] / [email protected]
Note & Disclaimer – All Study Materials Here are shared Only For Educational Purposes .Most of The Material Is Already Available On Internet .We Are Just Sharing That Link Only  . Whole Materials Is For Education Purpose Only .We Work hard to Provide You Quality Study Materials And Error Free Study Materials For All Competitive Exams .You can Also Share Study Materials,Notes Or Any Materials With Us .We Will Publish That Material On Our Website .It is a Humble Request To All Of You Please Share This Post With Your Friends And On Social Media . 



Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top