Rafale Controversy : Internal Dassault Paper Shows Reliance Mandatory For Deal

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An inner doc of Dassault Aviation reveals that selecting Anil Ambani’s RelianceDefence because the offset accomplice in India was a “trade-off” for the 36 Rafale deal, in line with the investigative report printed by French investigative journal Mediapart.

The report says the doc reveals a high Dassault official, Loik Segalen had defined to its employees on 11 May 2017, that the three way partnership was a “trade-off”, that was “imperative and mandatory” to win the Rafale deal.

At Dassault Aviation, in line with a doc obtained by Mediapart, the partnership with Ambani had successfully been offered like a”trade-off” for the Rafale contract. Dassault Aviation’s Deputy Chief Executive Officer, Loïk Segalen, mentioned this clearly on May 11, 2017, throughout a presentation of the Dassault Reliance Aerospace three way partnership to employees representatives in Nagpur. “It was imperative and mandatory for Dassault Aviation to accept this trade off to obtain the contract to export Rafale to India”, mentioned the quantity 2 (deputy CEO) of the group mentioned, in line with a report ready by the employees.

– Translated in English

When contacted by Mediapart, the Dassault group once more refused to touch upon this doc.

On 21 September, former French President Francois Hollande instructed Mediapart that India had given no option to Dassault, however to work with Reliance Defence. Hollande claimed the Indian authorities had proposed Reliance’s identify for the pact, which was agreed upon when he was president.

However, India’s Defence Ministry denied the previous French president’s declare whereas France mentioned it’s not concerned in selecting Dassault’s industrial companions for tasks in India. In a separate assertion, Dassault Aviation mentioned had denied the report and mentioned it “has freely chosen to make a partnership with India’s Reliance Group.”

Ambani’s Reliance Defence grew to become a part of the offset programme of the Rs 59,000-crore Rafale deal by means of DRAL wherein it holds a 51% stake. Dassault Aviation holds 49% stake in DRAL. In October 2017, Dassault CEO Eric Trappier had introduced an funding of 100 million euros within the DRAL manufacturing facility deliberate at Nagpur, which was scheduled to start out manufacturing in 2018.

The deal for 36 Rafale jets was introduced by the PM on April 10, 2015 throughout his go to to Paris which led to the cancellation of the 126 plane deal being negotiated by the UPA. The deal was signed on 23 September 2016 in Delhi between then Defence Minister Manohar Parrikar and his French counterpart.

As per contract below the offsets clause, France is to speculate 50 per cent of the whole order price in native contracts in India, price Rs 30,000 crore. The offset obligations of the deal are to be discharged from September 2019 to September 2023.

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