[One doesn't have to share the same page with the author, on his broader
conclusions, to acknowledge that the analysis/comment offers a brief and
useful summing up of the Deal.

《Hence the BJP’s decision to fall back on its old bugbear, national
security, in its response on the aircraft deal. It hopes to defuse the
questioning through a moral argument, rather than a logical one. Earlier in
its tenure, this might have worked better, when the taint of UPA-era scams
remained on the Congress making it hard for that party to even bring up
allegedly corrupt deals.
But it has been four years since then and much water has flowed under the
bridge, particularly in Gujarat where the Congress seemed to found its feet
as an Opposition party. The approach to Rafale strengthens this even
further, cementing the Congress as the questioning outsider even though
Modi would like you to believe the Nehru-Gandhis are still India’s
Establishment. Can the Congress, a party that still lacks coherence and
believes itself to be India’s rightful ruler, embrace this outsider role?》]

https://scroll.in/article/868198/rafale-with-u-turns-and-confidential-deals-bjp-really-has-become-congress-plus-cow

Rafale: With U-turns and confidential deals, BJP really has become Congress
plus cow
Can Rahul Gandhi take advantage of the turning tide?

Rafale: With U-turns and confidential deals, BJP really has become Congress
plus cow

4 hours ago
Rohan Venkataramakrishnan

The Bharatiya Janata Party has never looked more like the Congress than it
did last week. After being questioned about the ballooning cost of a
defence deal, it made a U-turn from an earlier promise to reveal details:
to do so, it said, would endanger national security. As if to underline how
remarkable this turning of the tables has been, it is the Congress that has
gone hammer and tongs after the BJP for refusing to reveal details about a
massive defence deal and even accuses the government of favouring a
specific industralist in the process. History may not repeat itself (but it
often rhymes).

The deal at hand is the one for 36 Rafale aircraft, a fighter jet that
India has been negotiating to buy for more than a decade. The Indian Air
Force had originally issued a tender in 2007 for 126 aircraft and,
following a selection process, the Rafale, which is built by France’s
Dassault Aviation, was picked in 2012. Negotiations over what exactly India
would be getting while buying the fighter were inconclusive under the
Congress-run United Progressive Alliance, so when the BJP came to power in
2014 the deal was put on hold.

New deal
The UPA-era deal was a large one, for 126 aircraft, 18 of which would be
delivered in a “fly-away” condition, meaning completely manufactured, while
the other 108 were supposed to be built along with India’s Hindustan
Aeronautics Limited with some transfer of technology. In 2015, after
putting this deal on hold, Prime Minister Narendra Modi visited France and
suddenly announced a new deal altogether. India would be buying 36 Rafale
jets in a government-to-government arrangement that would see all arrive in
fly-away condition, with no transfer of technology. This was touted as
proof of Modi’s decisive action, moving forward on a deal on which the UPA
had failed to follow through.

However, the deal immediately raised red flags. Although the Rafale had
cleared the earlier selection process, the old deal was based on a tender
for 126 aircraft with a number of other conditions. This new deal was a
direct arrangement between France and India. What it lacked, however, was
open bidding and the opportunity to discover the price other companies
might bid. Nevertheless, after Modi’s arrangement, the deal was pushed
through India’s processes. After several rounds of negotiations over the
price and a visit from the French President, it was concluded for a price
of 7.8 billion euros or about Rs 59,000 crore.

Questions were raised about why that amount seemed to come out to Rs 1,600
crore per aircraft, when earlier the UPA had been discussing costs in the
range of Rs 526 crore or so per aircraft, although that deal was never
finalised. In 2016, the Defence Ministry officially told Parliament that
the per-unit cost of the aircraft would come up to Rs 670 crore.
Subsequently the explanation for the much higher price of Rs 1,600 crores
was that it included all the weapons package, spares, costs to maintain 75%
fleet maintainability and logistics for five years. In November 2017, the
Defence Minister said in no uncertain terms that she would prove that her
government had arrived at a price that was better than the UPA one.

U-turn
But earlier this week, the Defence Ministry told Parliament that it could
not answer questions about the specific cost of the aircraft because that
would break the confidentiality agreement between India and France. In
responses outside Parliament, BJP leaders sought to insist that revealing
such details would endanger national security.

Congress President Rahul Gandhi and the rest of his party have been
relentlessly attacking the BJP, using the additional stick of the offset
clause. In the UPA deal, the manufacturer Dassault was to work with India’s
public sector HAL to manufacture the bulk of the aircraft. In the Modi
deal, done directly with France, Dassault has to spend Rs 30,000 crore in
developing manufacturing, design, training and maintenance facilities in
India. Since this is not explicitly linked to the public sector HAL, the
accusation has been that the deal is set up so that this money goes to
Dassault’s existing Indian partner for civil aircraft in Nagpur owned by
Anil Ambani.

Debate over the deal has raged over the past few days, throwing up some
important questions on defence deals in general. Journalist Ajai Shukla,
for example, wrote that the defence ministry’s insistence that revealing
details about the cost of the aircraft would endanger national security is
“not backed by facts”. NDTV’s Vishnu Som points to occasions when the
Congress-run UPA also declined to provide details citing confidentiality.
Even as the BJP leadership was insisting the Congress was trying to
compromise India’s security by asking questions about the deal, Rahul
Gandhi came out punching, demanding an opportunity to speak in Parliament
and pointing to occasions when the UPA had provided specific details to
Parliament.

Defence journalist Manoj Joshi offered a different view. He suggested that
almost every defence deal involves money beyond the actual cost in some
form or the other. He blamed the current state of affairs on the Air Force,
saying it “ridiculously, and probably deliberately, combined six different
kinds of fighters for a single requirement which was a cheap interim
machine till the Light Combat Aircraft was developed”.

Political calculations
But beyond the questions specific to the deal itself, the politics around
it are interesting. The BJP, a party that came to power criticising the
Congress’ opacity and its own transparency, finds itself on the receiving
end of the same medicine. Prime Minister Narendra Modi still cites Bofors,
a decades-old graft scandal that tainted past Congress governments, as
proof of his opponent’s corrupt ways. Now Rahul Gandhi waves around the
Rafale deal with equal ease, dropping in generous references to Ambani. Yet
the BJP seems adamant on not revealing the price despite this questioning,
possibly because the answers might be more politically embarrassing than
the queries.

In some ways, though, even if they did reveal numbers, the Congress has
done what it intended to. This is because defence deals are complicated
beasts, and it is hard to convey that complexity in political messaging.
The Congress approach on the Loya case is similar – it is hard to
conclusively say what exactly happened in the death of the Special CBI
Judge hearing the Sohrabuddin case. But for now the impression has stuck
that something dubious has happened, both in the Rafale and the Loya
matters.

Hence the BJP’s decision to fall back on its old bugbear, national
security, in its response on the aircraft deal. It hopes to defuse the
questioning through a moral argument, rather than a logical one. Earlier in
its tenure, this might have worked better, when the taint of UPA-era scams
remained on the Congress making it hard for that party to even bring up
allegedly corrupt deals.

But it has been four years since then and much water has flowed under the
bridge, particularly in Gujarat where the Congress seemed to found its feet
as an Opposition party. The approach to Rafale strengthens this even
further, cementing the Congress as the questioning outsider even though
Modi would like you to believe the Nehru-Gandhis are still India’s
Establishment. Can the Congress, a party that still lacks coherence and
believes itself to be India’s rightful ruler, embrace this outsider role?

-- 
Peace Is Doable

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