In a packed press briefing Randeep Singh Surjewala called ‘Rafale Deal’ to be an example of 3C’s – ‘Culture of Crony Capitalism’ is the DNA of Modi Govt! It is truer than ever in case of Rs 60,145 Cr ‘Rafale Deal’
The briefing further questioned Modi government –
‘Art of Deceiving India’ is the Modi Govt’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 Govt.
- Public Sector Undertaking, Hindustan Aeronautics Limited (HAL) signed Rs 36,000 Cr offset contract in shape of a ‘Workshare Agreement’ dated 13th March, 2014. Once PM, Shri Narendra Modi unilaterally announced an ‘off-the-shelf’ purchase of 36 Rafale aircrafts on 10th April, 2015; PSU, HAL was suddenly denied the biggest ever ‘Defence Offset Contract’.
- ‘Defence Offset Contract’ went to a private company, Reliance Defence Ltd., which had zero experience of manufacturing fighter aircrafts. Reliance Defence Ltd. had been constituted 12 days before (28th March, 2015) the announcement of purchase of 36 Rafale aircrafts by PM in France on 10th April, 2015. Reliance Defence Ltd. did not have the license to manufacture fighter aircrafts.
- Intriguingly, Reliance Aerostructure Ltd. was given the license to manufacture fighter aircrafts by the Defence Ministry but it did not own any land or building on the date of the license i.e 22nd February, 2016. What is even more surprising is the fact that even Reliance Aerostructure Ltd. was incorporated on 24th April, 2015 i.e 14 days after the announcement of purchase of 36 Rafale aircrafts by PM in France on 10th April, 2015.
- Shocking revelations and evidence further reveals the lies of Defence Minister, Smt. Nirmala Sitharaman on lack of knowledge regarding award of Rs 30,000 Cr ‘Defence Offset Contract’ to Reliance Defence Ltd. Absence of approval for ‘Defence Offset Contract’ to Reliance Defence Ltd. from ‘Defence Minister’ and ‘Acquisition Manager’ of Defence Ministry and ‘Defence Acquisition Council’ in complete violation of ‘Defence Offset Contract’ guidelines.
Rs 1,30,000 Cr Lies being paddled by Modi Govt -‘Defence Offset Contract’ worth Rs.30,000 Cr and ‘Lifecycle Cost Contract of Rs 1,00,000 Cr
Reliance Defence Limited claims to have secured the ‘offset contract’ from ‘Dassault Aviation’ for Rs.30,000 crore and a consequent ‘Lifecycle Cost Contract’ of Rs 1 Lakh Cr. Please see press release dated 16.02.2017 of Reliance attached as Annexure A-1 and RInfra Investors’ Presentation as Annexure A-2.
Even Dassault Aviation in its Annual Report 2016-17 (relevant portion attached as Annexure A-3) has claimed that ‘offset contract’ is being executed by ‘Reliance’.
On the contrary, Defence Minister, Smt. Nirmala Sitharaman has claimed in a PIB press release dated 07.02.2018 that the ‘offset contract has not been awarded’ by Dassault Aviation. Copy of press release is attached as Annexure A-4.
Simple question is, who is lying – Defence Minister, Smt. Nirmala Sitharaman or Reliance/Dassault Aviation?
Violation of ‘Defence Offset Contract Guidelines’ in awarding Rs.30,000 Cr ‘Offset Contract’
Defence Ministry has set up a permanent ‘Defence Offset Management Wing’ (DOMW) and issued ‘Defence Offset Contract Guidelines’ for all ‘offset contracts’ (http://www.makeinindiadefence.gov.in/DefenceOffsetGuidelines.pdf). Relevant extract is attached as Annexure A-5. They mandate:-
(i) All offset proposals will be approved by Defence Minister and will contain part of approval for the main procurement of Defence product. (Para 8.6 of the Offset Guidelines). Offset contract is required to be countersigned by the ‘Acquisition Manager’ of Defence Ministry. (Para 8.6 of the Offset Guidelines).
(ii) Progress of offset contracts is required to be audited on a six monthly basis by a nominated officer of DOMW, Ministry of Defence. (Para 8.8 of the Offset Guidelines).
(iii) ‘Acquisition Wing’ of Defence Ministry is required to submit an Annual Report to the ‘Defence Acquisition Council’ regarding details of offset contracts signed as also status of implementation. (Para 8.17 of the Offset Guidelines). Failure to meet the offset obligations in any particular year is to be penalized with a penalty equivalent to 5% of unfulfilled offset obligations. (Para 8.13 of the Offset Guidelines
