Fresh controversy erupts after French media claims deal with Reliance was mandatory for Dassault

Reliance Is The World’s Costliest Energy Stock To Own

French publication Mediapart is reported to have discovered an inner doc pertaining to Dassault Aviation, which purportedly claims that the offset deal with Reliance was mandatory for the corporate to get the contract to provide the 36 Rafale fighter planes to India. According to the report, whereas inaugurating the Dassault Reliance Aerospace facility in Nagpur, the Deputy Chief Executive Officer of Dassault Aviation Loik Segalen is reported to have mentioned that ‘It was imperative and mandatory for Dassault Aviation to accept this counterpart (offset partnership), in order to seal the deal to sell Rafale jet to India’.

While Congress and a few journalists have latched onto this report and have began claiming that this can be a ‘proof’ of Indian authorities favouring Anil Ambani’s Reliance, there are others who consider that Mediapart has both intentionally or inadvertently misinterpreted remark made by the Dassault official. Rafale deal is a authorities to authorities deal between India and France, and this deal has an offset clause as per India’s offset coverage. According to this coverage, the international vendor has offset 50% of the deal worth in India. The offset could within the type of funding in India, buy from India, and know-how switch. It has already been reported that Dassault has entered into offset partnerships with a number of firms from each non-public and public sector India, which incorporates BEL, DRDO, HAL, BTCL, Samtel, Reliance Defence, L&T, Mahindra Group and so on. The French firm has signed MoUs with 72 firms for numerous offset agreements and speaking with extra..

Other than Dassault, engine maker Safran, radar and aviation electronics provider Thales, and missile supplier MBDA additionally must fulfil offset obligations and they’re additionally within the strategy of coming into into such partnerships.

Therefore, it is extremely a lot attainable that the Dassault official was speaking about offset partnerships as an entire and never particularly concerning the Reliance deal. Because offset partnerships are certainly mandatory as per Indian guidelines. It is value mentioning that DRDO is largest offset accomplice within the Rafale deal, and Reliance’s complete share in it is going to be minor, which at current stands at lower than 3%, which is the funding Dassault has made within the Nagpur plant. Also vital to notice that at present this plant is manufacturing elements for a civilian jet Falcon, not the Rafale jet.

French sources have confirmed that the Dassault deputy CEO was speaking about round 100 offset partnerships that the corporate has entered into as mandatory requirement for the deal.

The officer was addressing union representatives of the corporate, and it was crucial to clarify to them why the manufacturing of some elements of the Falcon enterprise jet was being moved out of France. As it’s the first time Dassault Aviation is shifting a manufacturing facility outdoors France, getting the union to agree on this was crucial.

The authentic tender issued by UPA authorities to purchase an MMRCA was for 126 jets, and Dassault had received that bid throughout UPA time period itself. But the deal didn’t undergo as Dassault refused to take duty for 108 jets that was to be made by HAL in India. Now, the corporate received a bid to 108 jets however let it go as a result of they didn’t need to work with an organization Indian authorities had chosen, can the identical firm be pressured to work with one other firm for a smaller deal for simply 36 jets?

Both Indian and French governments and Dassault aviation have repeatedly asserted that the corporate is free to decide on its offset companions and governments haven’t any function in it.

Earlier, this identical publication had claimed that former France President Hollande had mentioned that India had chosen Reliance for the deal, however this declare was denied by each the governments and the corporate. Later when Hollande requested to touch upon it, he had mentioned that solely Dassault can remark.

The Mediapart appear to be extensively utilizing arguments made by the opposition in India in its report. The report quotes Arun Shourie, Prashant Bhushan, Yashwant Sinha, individuals who’re among the many largest critics of the federal government at current. The report claims that Modi authorities cancelled the deal to purchase 126 jets, ignoring the truth that the deal was stalled for over two years as a result of disagreement over HAL between Dassault and the Indian authorities.

The report by Mediapart additionally repeats the lie unfold by Congress that Reliance Defence was shaped twelve days earlier than PM Modi’s France go to. Fact is Pipavav Shipyard was established in 1997 which was acquired by Reliance in 2015, and was renamed as Reliance Defence and Engineering in 2016. The report additionally claims Anil Ambani is unknown within the defence business. Fact is Reliance Defence is a identified title within the business they usually have simply received a deal value ₹ 15,000 crore billion to take care of the warships of the seventh fleet of US Navy, amongst many different offers. seventh fleet is the most important fleet of the US Navy and its fleet measurement and firepower is definitely greater than complete Indian navy.

The report by the French journal truly reads extra like a Rahul Gandhi speech than an investigative report, going by what number of instances they point out Anil Ambani’s title, not forgetting to tell that he’s ‘close friend’ of Narendra Modi.

OpIndia has reached out to Dassault for a remark about this report by Mediapart, and we’re awaiting the identical to know the reality of the matter.

Update: Dassault Aviation has issued an in depth clarification denying the claims of the French portal MediaPart.

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