When Mukesh Ambani Battled Anil Ambani For Rafale Fighter Jet Deal: Economic Times

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Were each Mukesh Ambani and brother Anil Ambani competitors for Rafale Fighter Jet Deal? As per stories in Indian media, previous to Anil Ambani, an organization managed by Mukesh Ambani was in talks to be the principle personal sector companion for the Rafale fighter jet deal when it was negotiated below the earlier Congress-led authorities.

According to Indian Economic Times, the plan was shelved following a strategic rethink by Reliance, which withdrew from the defence and aerospace enterprise after 2014. According to the unique deal, Dassault Aviation, the French producer of Rafale fighter jets, had deliberate to take a position over Rs 1 lakh crore in offset obligations.

When approached by ET, each Reliance Industries and Dassault avoided making any official touch upon issues associated to the deal. ET spoke to key interlocutors concerned within the effort to determine the best companion for Rafale offsets since 2007.

At one time, tainted agency Offsets India Solutions, whose promoter allegedly had hyperlinks with Robert Vadra, Congress celebration president Rahul Gandhi’s brother-in-law, tried to enter the fray and had utilized ‘considerable pressure’ for a slice of the work, in keeping with key negotiators. OIS just about shut down after promoter Sanjay Bhandari fled to London in February 2017, following a probe into his enterprise features in India.

Dassault was free to decide on its personal sector companions, offered the principle manufacturing line was arrange with state-owned Hindustan Aeronautics Ltd. Under the unique deal for 126 jets, the French facet would have been liable to take a position Rs 1,07,415 crore in India as offsets.


Dassault entered its Rafale jet into the fray for India’s Medium Multi-Role Combat Aircraft contract on August 28, 2007. At that time, Dassault is claimed to have initiated talks with the Tata group for a partnership.

The massive quantum of offsets – 50% of the deal worth – prompted all contenders, together with US plane makers Boeing and Lockheed Martin, to search for personal Indian corporations that would tackle large-value orders.

Insiders mentioned that after TATA determined to go together with a US companion, Dassault opened talks with the Mukesh Ambani-led Reliance, which was contemplating coming into the aerospace sector. A brand new firm, Reliance Aerospace Technologies Ltd. (RATL), was included on September 4, 2008.

In May 2011, weeks after the Rafale and the Eurofighter jets have been shortlisted by the air pressure, RATL began hiring key employees to sew collectively a partnership roadmap that included discussions on HAL’s position.

In January 2012, Dassault emerged because the lowest bidder for the contract and worth negotiations commenced with the defence ministry, which included the offsets plan and the phrases of the contract with HAL.

The offsets roadmap labored out with Dassault included a plan to arrange a centre for composites manufacturing, switch of hi-tech know-how and a three way partnership for the Falcon enterprise jets programme, moreover bigger plans to put money into Smart Cities sooner or later. The offset talks got here to a standstill after the principle plane deal hit an air pocket.

In June 2014, after the change of presidency, the plan to companion with Mukesh Ambani seem to have fizzled out.

Those conscious of the small print advised ET on situation of anonymity {that a} memorandum of understanding on the offsets deal was merely allowed to lapse. Also, Reliance is claimed to have determined to avoid this enterprise. “There were talks and several rounds of discussions where the teams met but nothing much happened beyond that. Things did not even reach the proof of concept stage and when the MoU lapsed, it was not renewed,” an insider conscious of the talks advised ET.


After the MoU lapsed, OIS approached Dassault for a partnership. The firm was a visual participant within the offsets house with a presence in any respect worldwide occasions. “There was considerable pressure to tie up for a partnership. Proposals were made several times and through several people,” a dependable supply advised ET.

However, the French facet determined towards going with OIS after a number of preliminary rounds of talks. OIS promoter Bhandari’s perceived proximity with Vadra was mentioned to be a powerful issue.

In May 2016, Bhandari’s workplaces in New Delhi have been raided as a part of an Enforcement Directorate probe into prices of wrongly influencing defence offers. Bhandari fled to London thereafter and has been unavailable since.

Bhandari was booked below the Official Secrets Act after confidential defence ministry paperwork have been present in his workplaces.

The Central Bureau of Investigation joined the probe. Investigators are wanting into prices that he tried to affect defence offers with European corporations in India.

On June 24, 2015, the defence ministry withdrew the 126 plane deal tender. A brand new government-to-government contract was negotiated with the French facet to buy 36 jets off-the-shelf to satisfy India’s pressing necessities. This set off a recent flurry of partnership plans for offsets valued at Rs 29,631 crore, about one-third the sooner quantity.


Dassault selected to go together with Anil Ambani-led Reliance Defence, which was included on March 28, 2015, days earlier than the brand new deal was introduced in Paris. Sources advised ET that the partnership with Reliance Defence was influenced by the unique talks held with Mukesh Ambani.

“A lot of the work had already been done prior to 2014, including feasibility studies,” an individual near the negotiations advised ET. The largest chunk of the brand new offsets plan – to arrange a Falcon govt jet manufacturing plant at Mihan in Maharashtra – had been mentioned with RATL.

An individual who negotiated the three way partnership advised ET that the deciding issue was land – over 30 acres at Mihan in Nagpur – as a result of the enterprise required a manufacturing unit to be arrange subsequent to a runway with direct apron entry to roll out govt jets. The French facet selected over 72 companions for the offsets given the quantum, together with HAL, Larsen & Toubro, Tata, BEL and a number of other smaller corporations. This offsets contract has now come below assault by the Congress, which has alleged crony capitalism and discrepancies.

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