Rafale: Defence Minister Sitharaman says NDA deal cheaper than UPA''s

Ajay Banerjee
Tribune News Service
New Delhi, November 17

In what is the first government rebuttal of Congress party’s allegations on the Rafale fighter jet deal, Defence Minister Nirmala Sitharaman on Friday said cost negotiated per aircraft by the ruling Bharatiya Janata Party was much lower than what was negotiated by its predecessor, the United Progressive Alliance, during its tenure.

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On being asked repeatedly how much the aircraft cost when the UPA was negotiating purchase after Rafale was selected as lowest bidder in a trial process of six plane makers, Sitharaman said: “ I am not shying away from giving figures”, asking Defence Secretary Sanjay Mitra to share the details.

UPA was the ruling dispensation between 2004 and 2014. 

She said the Rafale had been selected as lowest bidder in 2012 and although protracted negotiations followed, there were no contract.

The 36-plane deal from Rafale was for 7.8 Billion Euros (almost Rs 59,000 crore). The Defence Secretary was asked to share the figures of the 2012 bid and negotiation

Sitharaman said the decision for emergency purchase was taken in view of the urgent requirement of the Indian Air Force (IAF). "Between 2000-14, entire decade the UPA Government could not arrive at a decision and now they are questioning us,” said the Minister.

The Prime Minister understood loss of time and took the government-to-government route for 36 aircraft. Transfer of technology made no sense," Sitharaman said addressing the media.

Saying that the Congress could be accused for error of commission, she said the cost of 36 aircraft was much lesser than that under discussion for 126 jets.

Sitharaman said under the Defence Procurement Procedure it was "allowed to contract a friendly Government to get 36 aircraft in fly away condition at the earliest. The procedure was duly followed", she said.

Over the last few days Congress party has raised serious questions on the Rafale deal, claiming there were deviations in procedure and escalation in price.        

Congress spokesperson Randeep Surjewala had claimed that the cost of one plane was Rs 526.1 crore, whereas under NDA, the plane is costing Rs 1570 crore. Why was transfer of technology for HAL not insisted and finally, has the joint venture between Dassault and Reliance Defence been cleared by the Union Cabinet asked the Congress leader.

The Defence Minister said the Transfer of technology is not economically feasible with just 36 planes, but could have been done with 126 planes.