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The deal finalised by the Narendra Modi government with France for the purchase of 36 Rafale fighter aircraft is less costly than the one quoted by Dassault Aviation during the UPA tenure in 2007, The Indian Express reported, citing top government sources
The deal finalized by the Narendra Modi government with France for the purchase of 36 Rafale fighter aircraft is less costly than the one quoted by Dassault Aviation during the UPA tenure in 2007, The Indian Express reported, citing top government sources.
The opposition parties led by Congress have alleged that a whopping amount of Rs 525 crore was paid for a Rafale aircraft, claiming that it was more than what was quoted by Dassault Aviation. As per the sources cited by The Indian Express, the figure of Rs 525 crore that opposition parties are citing is based on the 2007 bid by the manufacturer based on its prevailing exchange rate at the time.
The report further claims that the 2016 deal was for the basic Rafale, meaning it would be without the missiles, weapons, radars and avionics. As per government sources cited by IE, the Indian Air Force (IAF) conveyed to the central government that it needs Rafale with 75 per cent serviceability, Meteor missiles and other special requirements. “The IAF told us that because we were buying only 36 Rafale and not 126, they needed them to be more potent,” a source was quoted as saying. He added that the requirements set forth by the IAF — since the number of aircraft had gone down from 126 to 36 — the costs shot up and were not thought of even until 2011.
According to The Indian Express, the calculation cited by officials shows that the price of each of the “bare” 36 Rafale bought in 2016 was lower than the 2007 bid for 18 Rafale and the Eurofighter, all at 2015 exchange rates (Euro to rupee). The calculation, taking into account a fixed escalation formula, concludes that the 2007 bid for each of the 18 Rafale would have amounted in 2015 to Euro 100.85 million (Rs 765.4 crore at 2015 exchange rate of 1 Euro = Rs 75.90), the Indian Express reported citing sources, adding that the 2007 bid price for every Eurofighter would in 2015 have worked out to be Euro 102.85 million. Both these bids would have translated into a costlier proposition than the Rafale 2016 deal, they said.
Compared to the two propositions, the price of each of the “bare” 36 Rafale bought in 2016 was Euro 91.7 million (Rs 696 crore at the 2015 exchange rate), lower than both the earlier Rafale and Eurofighter bids, the report added. As per IE sources, the 2007 deal factored in a fixed annual escalation of 3.9 percent for the entire delivery period of five to six years. This, the report said, was lowered to 3.5 per cent in 2015-16. Meanwhile, senior IAF officials have said that Rafale has the ability to meet all the criterias that IAF wants from a modern fighter jets.
The sources further added that the weaponry (Euro 710 million), spare parts (Euro 1,800 million), weather and terrain compatibility fits (Euro 1,700 million), and performance-based logistics support (Euro 353 million) made for “additional costs” in the deal.
The BJP-led NDA government had said that the deal was sealed for buying 36 Rafale fighter aircraft. The government had clearly conveyed that it had no intention of buying more such fighter aircraft even as IAF officials long for having more Rafale’s in IAF’s arsenal. Actually, the IAF has authorised 42 squadrons of fighter aircraft. However, the size is down to 31 squadrons. The number may go down to 27 by 2032 and 19 by 2042 if no further acquisition takes place.
So far, the BJP and opposition-led by Congress have sparred over the pricing of Rafale. Congress President Rahul Gandhi had even accused Prime Minister Narendra Modi of “changing” the deal only to “benefit a businessman”. Congress had alleged that interests of public sector Hindustan Aeronautics Limited (HAL) were neglected by the central government. Congress has also alleged that French manufacturer of Rafale aircraft Dassault Aviation had entered into an agreement with Reliance Defence even as it had refused to transfer technology to HAL. BJP has rejected all the allegations saying Rahul Gandhi adopted “big lie technique”. The party had also claimed that during Congress governments, Defence deals used to be a way of earning bribes and commissions.
http://www.financialexpress.com/ind...in-2007-here-is-what-officials-claim/1084409/
The deal finalized by the Narendra Modi government with France for the purchase of 36 Rafale fighter aircraft is less costly than the one quoted by Dassault Aviation during the UPA tenure in 2007, The Indian Express reported, citing top government sources.
The opposition parties led by Congress have alleged that a whopping amount of Rs 525 crore was paid for a Rafale aircraft, claiming that it was more than what was quoted by Dassault Aviation. As per the sources cited by The Indian Express, the figure of Rs 525 crore that opposition parties are citing is based on the 2007 bid by the manufacturer based on its prevailing exchange rate at the time.
The report further claims that the 2016 deal was for the basic Rafale, meaning it would be without the missiles, weapons, radars and avionics. As per government sources cited by IE, the Indian Air Force (IAF) conveyed to the central government that it needs Rafale with 75 per cent serviceability, Meteor missiles and other special requirements. “The IAF told us that because we were buying only 36 Rafale and not 126, they needed them to be more potent,” a source was quoted as saying. He added that the requirements set forth by the IAF — since the number of aircraft had gone down from 126 to 36 — the costs shot up and were not thought of even until 2011.
According to The Indian Express, the calculation cited by officials shows that the price of each of the “bare” 36 Rafale bought in 2016 was lower than the 2007 bid for 18 Rafale and the Eurofighter, all at 2015 exchange rates (Euro to rupee). The calculation, taking into account a fixed escalation formula, concludes that the 2007 bid for each of the 18 Rafale would have amounted in 2015 to Euro 100.85 million (Rs 765.4 crore at 2015 exchange rate of 1 Euro = Rs 75.90), the Indian Express reported citing sources, adding that the 2007 bid price for every Eurofighter would in 2015 have worked out to be Euro 102.85 million. Both these bids would have translated into a costlier proposition than the Rafale 2016 deal, they said.
Compared to the two propositions, the price of each of the “bare” 36 Rafale bought in 2016 was Euro 91.7 million (Rs 696 crore at the 2015 exchange rate), lower than both the earlier Rafale and Eurofighter bids, the report added. As per IE sources, the 2007 deal factored in a fixed annual escalation of 3.9 percent for the entire delivery period of five to six years. This, the report said, was lowered to 3.5 per cent in 2015-16. Meanwhile, senior IAF officials have said that Rafale has the ability to meet all the criterias that IAF wants from a modern fighter jets.
The sources further added that the weaponry (Euro 710 million), spare parts (Euro 1,800 million), weather and terrain compatibility fits (Euro 1,700 million), and performance-based logistics support (Euro 353 million) made for “additional costs” in the deal.
The BJP-led NDA government had said that the deal was sealed for buying 36 Rafale fighter aircraft. The government had clearly conveyed that it had no intention of buying more such fighter aircraft even as IAF officials long for having more Rafale’s in IAF’s arsenal. Actually, the IAF has authorised 42 squadrons of fighter aircraft. However, the size is down to 31 squadrons. The number may go down to 27 by 2032 and 19 by 2042 if no further acquisition takes place.
So far, the BJP and opposition-led by Congress have sparred over the pricing of Rafale. Congress President Rahul Gandhi had even accused Prime Minister Narendra Modi of “changing” the deal only to “benefit a businessman”. Congress had alleged that interests of public sector Hindustan Aeronautics Limited (HAL) were neglected by the central government. Congress has also alleged that French manufacturer of Rafale aircraft Dassault Aviation had entered into an agreement with Reliance Defence even as it had refused to transfer technology to HAL. BJP has rejected all the allegations saying Rahul Gandhi adopted “big lie technique”. The party had also claimed that during Congress governments, Defence deals used to be a way of earning bribes and commissions.
http://www.financialexpress.com/ind...in-2007-here-is-what-officials-claim/1084409/
