Accepting defeat from Pakistan, Modi whines over Rafale aircraft's shortage
Critics had accused Modi of using the multi-billion dollar accord to favour a key billionaire backer
(Web Desk) - Indian Prime Minister Narendra Modi while admitting defeat from Pakistan has begun to whine over the shortage of Rafale jets, swanking that they would have achieved much more if the country had the possession of that aircraft.
“The country has felt the shortage of Rafale. Today, India is speaking in one voice and saying what all could have happened if we had Rafale. Ego politics over the Rafale deal has harmed the nation,” the Indian prime minister boasted while addressing the India Today Conclave 2019 in the national capital.
His remarks came days after Pakistan shot down a MiG-21 jet as it chased Pakistani jets over Azad Kashmir. Wing Commander Abhinandan Varthaman was taken into custody by Pakistani Army but released on Friday after Khan unexpectedly announced that the captured pilot would be released as a "peace gesture".
Critics had accused Modi of using the 2016 multi-billion dollar accord between India and French aircraft manufacturer Dassault for Rafale aircraft to favour a key billionaire backer.
Dassault initially won the contract to supply 126 jets to India in 2012, with 18 to be built in France and the rest in India in collaboration with the state-owned Hindustan Aeronautics Limited (HAL).
However, during a visit to France in 2015 Modi scrapped the deal, signed under the previous government led by the Congress party, and ordered instead 36 jets — all to be built in France — for an estimated $9.4 billion.
No experience
Under Indian defence procurement rules, foreign companies winning contracts must "offset" or reinvest half the total value in joint ventures or purchases with Indian firms.
But the new agreement, formally signed in 2016, raised eyebrows because Dassault chose as its local partner Reliance, a massive conglomerate owned by billionaire Anil Ambani.
Ambani is believed to be close to Modi and Reliance had no previous experience in the aviation sector.
‘No choice on the Indian partner’
Former French president Francois Hollande fuelled controversy over the jet deal saying that France was given no choice on the Indian partner for manufacturer Dassault.
"We did not have a say in that," Hollande told investigative website Mediapart. "It was the Indian government that proposed this service group (Reliance), and Dassault who negotiated with Ambani."
"We did not have a choice, we took the interlocutor who was given to us," added Hollande, who was president of France from 2012-2017.
French firm Dassault had spent years negotiating a deal for 126 fighter jets to be manufactured in India with HAL, but talks had stalled.
On taking office, the Modi government cancelled the negotiations and decided to directly purchase 36 jets made in France.
Hollande denied any conflict of interest with Reliance, which partially financed a film produced by his girlfriend Julie Gayet in 2016.
"That is why, moreover, this group (Reliance) did not have to give me any thanks for anything. I could not even imagine that there was any connection to a film by Julie Gayet."
Speaking to AFP on the sidelines of a meeting in Canada, the former French leader insisted that France "did not choose Reliance in any way".
When asked whether India had put pressure on Reliance and Dassault to work together, Hollande said he was unaware and "only Dassault can comment on this".
Congress slams Modi
The deal became a major political issue with the leader of the main opposition Indian National Congress party, Rahul Gandhi, accusing Prime Minister Narendra Modi’s government of buying the aircraft at nearly three times the price being negotiated when his party was in power before Modi became prime minister in 2014.
The government refuted the claim, but says a secrecy clause governs the deal’s pricing. It did not even informed Parliament about the cost of the 36 planes.
Gandhi also accused Modi’s government of favoring the company owned by industrialist Anil Ambani, Reliance Group, when choosing an Indian partner for Dassault.
India’s government has denied any wrongdoing.
Dassault Aviation said that it “has freely chosen to make a partnership with India’s Reliance Group.”
The French company said that it had committed to side deals in India worth 50 percent of the value of the jet purchases. In order to deliver those side deals, it had decided to create a joint venture with Reliance Group.
--- with inputs from AFP, AP
