Rafale deal better than UPA’s: Sitharaman

Tribune News Service

New Delhi, November 17

In what is the Centre’s first response to the Congress’ allegations on Rafale fighter jet deal, Defence Minister Nirmala Sitharaman today claimed the aircraft cost negotiated by the ruling NDA was much lower than that by its predecessor UPA.

Asked repeatedly at what price the UPA (in power from 2004-14) negotiated the deal after selecting Rafale, a French firm, as the lowest bidder among six plane-makers, Sitharaman said “she wasn’t shying away from revealing the figures” and asked Defence Secretary Sanjay Mitra to share details.

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Addressing the media at the South Block (Defence Ministry headquarters), she said the UPA selected Rafale as the lowest bidder in 2012 and although protracted negotiations followed, no contract could be finalised. 

Again asking the Defence Secretary to share the figures of the 2012 bid and the negotiations that followed — Mitra is yet to make public the details — Sitharaman said the decision for emergency purchase of 36 Rafale jets was taken in view of the Air Force’s urgent requirement.

The NDA government had,  in September, finalised the 36-plane deal for 7.8 billion Euros (almost Rs 59,000 crore). “From 2004-14, the UPA sat over the proposed procurement of jets and now they are questioning our intent,” remarked the minister. She said the Prime Minister understood the loss of time and took the government-to-government route for purchasing the aircraft. “Transfer of technology made no economic sense,” she said.

Claiming the Congress could be accused of “error of commission”, she said the cost of the 36 aircraft (on per plane basis) was much lesser than that under the deal for 126 jets. She said under ‘defence procurement procedure’, it was “allowed to contact a friendly nation for the 36 aircraft in a fly-away condition at the earliest. The procedure was duly followed.”

The Congress, on the other hand, has raised serious questions on the Rafale deal, alleging deviations in the purchase procedure and escalation in the deal’s price.        

Congress spokesperson Randeep Surjewala claimed the cost of one plane was 

Rs 526.1 crore whereas under the NDA, it was costing Rs 1,570 crore. “Why was the transfer of technology to Hindustan Aeronautics Ltd not insisted upon and finally, has the joint venture between Dassault and Reliance Defence been cleared by the Union Cabinet?” he asked. 

Calling the bickering over the deal as “disservice” to the armed forces, Sitharaman said the transfer of technology was not economically feasible with 36 planes, but could have been done if 126 aircraft were bought. 

Govt, Opposition fight it out

The cost of one Rafale plane is Rs 526.1 crore whereas under the NDA regime, it is costing Rs 1,570 crore — Randeep Surjewala, Cong spokesperson

From 2004-14, the UPA sat over the proposed procurement of jets and now they are questioning our intent — Nirmala Sitharaman, Defence Minister