[The author, Gen Ashok K. Mehta, is founding member of the Defence Planning
Staff, currently revamped as the Integrated Defence Staff.

《Besides the question of pricing per piece of aircraft – provided in
parliament by junior minister Subhash Bhamre as well outside it to the
media by ministry of defence officials after signing of contract in
September 2016 – likely to be probed by CAG, two issues are still germane
to the Rafale controversy. These are whether due process was followed in
the acquisition mechanism; and was Dassault pressurised into awarding part
of the offset obligation (10% of 50% of the total contract) to Reliance’s
Anil Ambani.

On the first issue, a former defence finance advisor told me recently that
never in the several decades of his association with defence procurement
had he known of such abnormality in the procedure for defence acquisition:
decision to acquire Rafale being announced on foreign soil. India’s ace
combat fighter pilot, AVM Kapil Kak declared on TV last month that due
process was not followed before Modi made the surprise announcement in
Paris.

No clearance was sought from the Defence Procurement Board/Defence
Acquisition Council and Cabinet Committee on Security, as is clearly
mentioned in Defence Procurement Procedure, eight revision in 2016. Defence
minister Nirmala Sitharaman – who came into the game rather late, months
after the contract was signed – is strenuously making a distinction between
‘declaration of intent’ (Modi’s April 10 announcement in Paris); signing of
the MoU at New Delhi during Republic Day 2016 between Hollande and Modi;
and the consummation of the contract in September 2016 between the two
defence minister.

Only two CCS meetings were held (Bhamre informed parliament) and these were
on August 24, 2016, and another on September 21, 2016, both relating to
Rafale, the latter two days before signing the deal on September 23, 2016.
Bhamre had informed Rajya Sabha that the 126 Rafale contract was cancelled
on June 24, 2015.

The decision to acquire 36, not 126 Rafale was arrived at without reference
to DAC, no written consultation with IAF and sans approval of CCS. The
first CCS met sixteen months after the Paris announcement. The government
will explain this to ‘emergency acquisition in national interest due to
dwindling combat strength of IAF’. The sealed envelope that will be
submitted to the Supreme Court will say that CCS was needed before signing
the contract as being explained by Sitharaman. It is the decision to
acquire and sign an MOU which have to be ratified by DAC/CCS. Only two
persons were involved in the decision: Modi and NSA Ajit Doval. Then
defence minister Parrikar, who is not in the loop, is quoted as having
said: ‘he learnt about it from Doordarshan’.》]

https://thewire.in/government/rafale-deal-irregularities-here-to-stay

The Rafale Deal's Irregularities Aren't Going Away Any Time Soon
By downsizing the contract, all the NDA-II government has done is put the
airforce through another painful five-year selection process.

The Rafale Deal's Irregularities Aren't Going Away Any Time Soon
Rafale jet fighters on the assembly line in Dassault Aviation’s factory in
Merignac, France. Credit: Reuters

Ashok K. Mehta

2 HOURS AGO

The dogfight between UPA’s Rafale and NDA’s Rafale has turned into a daily
ritual as the political slugfest continues. Like the surgical strikes
politicised the army, airstrikes are politicising the air force.

For the second time in recent months, the French media (independent
investigative journal, Mediapart) has reported that Anil Ambani’s Reliance
obtaining the offsets contract was made ‘imperative and mandatory’ for
Dassault, suggesting it was quid pro quo for the contract of 36 Rafale.

This is precisely what former president Francois Hollande – with whom Prime
Minister Narendra Modi made a joint press statement on April 10, 2015,
conveying India’s emergency decision to buy 36 Rafale in flyaway condition
de facto cancelling the deal for 126 Rafale that had been stalemated during
the UPA government – has said twice.

Also read: Internal Dassault Document Says Reliance JV was a ‘Trade-off’
for Bagging Rafale Deal: French Report

But Dassault, probably fearing losing even the diminished contract, has
rebutted claims made by Hollande and Mediapart. The word of a former French
president – who was party to the initial declaration of intent and later
signed an MOU with Modi – is being dismissed lightly. The Dassault trade
union has now come up with the same facts confirming the
Reliance-for-Rafale quid pro quo.

A picture in a recent newspaper article showed Anil Ambani with his left
arm wrapped around French defence minister Florence Parly’s shoulder at the
foundation- stone – laying ceremony of Dassault Reliance Aviation Limited
Factory in Nagpur in October 2017 along with Dassault chairman Eric
Trappier, who said this week in the US that Dassault expects more follow up
order on Rafale from India.


Dassault chief Eric Trappier (left), Anil Ambani and French defence
minister Florence Parly at the foundation ceremony of Dassault Reliance
Aerospace Ltd in Nagpur in 2017. Credit: Twitter

Meanwhile, the Congress has withdrawn a PIL from the Supreme Court (wanting
to keep the JPC route open) but in response to an earlier PIL, the
three-judge Supreme Court bench headed by Chief Justice Ranjan Gogoi has
asked the government to outline its ‘decision making process and hand it
over in a sealed envelope before October 29’.

Besides the question of pricing per piece of aircraft – provided in
parliament by junior minister Subhash Bhamre as well outside it to the
media by ministry of defence officials after signing of contract in
September 2016 – likely to be probed by CAG, two issues are still germane
to the Rafale controversy. These are whether due process was followed in
the acquisition mechanism; and was Dassault pressurised into awarding part
of the offset obligation (10% of 50% of the total contract) to Reliance’s
Anil Ambani.

On the first issue, a former defence finance advisor told me recently that
never in the several decades of his association with defence procurement
had he known of such abnormality in the procedure for defence acquisition:
decision to acquire Rafale being announced on foreign soil. India’s ace
combat fighter pilot, AVM Kapil Kak declared on TV last month that due
process was not followed before Modi made the surprise announcement in
Paris.

No clearance was sought from the Defence Procurement Board/Defence
Acquisition Council and Cabinet Committee on Security, as is clearly
mentioned in Defence Procurement Procedure, eight revision in 2016. Defence
minister Nirmala Sitharaman – who came into the game rather late, months
after the contract was signed – is strenuously making a distinction between
‘declaration of intent’ (Modi’s April 10 announcement in Paris); signing of
the MoU at New Delhi during Republic Day 2016 between Hollande and Modi;
and the consummation of the contract in September 2016 between the two
defence minister.

Only two CCS meetings were held (Bhamre informed parliament) and these were
on August 24, 2016, and another on September 21, 2016, both relating to
Rafale, the latter two days before signing the deal on September 23, 2016.
Bhamre had informed Rajya Sabha that the 126 Rafale contract was cancelled
on June 24, 2015.

Full Text: Complaint Filed With CBI Against Narendra Modi, Manohar Parrikar
in Rafale Case

The decision to acquire 36, not 126 Rafale was arrived at without reference
to DAC, no written consultation with IAF and sans approval of CCS. The
first CCS met sixteen months after the Paris announcement. The government
will explain this to ‘emergency acquisition in national interest due to
dwindling combat strength of IAF’. The sealed envelope that will be
submitted to the Supreme Court will say that CCS was needed before signing
the contract as being explained by Sitharaman. It is the decision to
acquire and sign an MOU which have to be ratified by DAC/CCS. Only two
persons were  involved in the decision: Modi and NSA Ajit Doval. Then
defence minister Parrikar, who is not in the loop, is quoted as having
said: ‘he learnt about it from Doordarshan’.

As for how Anil Ambani was chosen by Dassault (Sitharaman: ‘I did not know
about it’) more will likely be outed on this from Dassault/France. Note
that Reliance Defence was registered in March 2015 weeks before Modi’s
announcement in Paris. Reliance Aviation was registered on April 24, 2015.
The offset guidelines were apparently changed in August 2015.

But the question that requires an answer and is being skirted is: ‘if the
UPA government could not seal the deal due to differences between Dassault
and HAL why did not the incumbent government try and bridge the gap and
seal the deal?’

That way IAF would have got 126 Rafale (7 squadrons) instead of 36 Rafale
(two squadrons) and also ToT. Sitharaman would not have had to say about
HAL which has produced 2,000 air craft that it cannot make  Rafale.
Further, it would have avoided undergoing the painful five-year selection
process of placing a fresh RFI in 2018 for 114 MMRCA from the same vendors
which competed in the original 126 Rafale deal that  was scuttled. If
Rafale emerges once again as L1 it would then be 36 plus 114 Rafale, a
happy ending for many. The alleged irregularities over the Paris decision
and accompanying Ambani offsets will not go away anytime soon.

Gen Ashok K. Mehta is founding member of the Defence Planning Staff,
currently revamped as the Integrated Defence Staff.


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