*"Gali Gali Shor Hai …!"* How A PSU, with Decades of Experience, Got Brusquely Displaced by a Private Newborn, with NIL Experience, in The Rafale "Deal", Steered by the "Chowkidar" Himself!
*Sukla Sen* *Background of the Deal* India, under the UPA, began the process to buy a fleet of 126 Medium Multi-Role Combat Aircraft (MMRCA) in 2007 after the Defence Ministry cleared the proposal from the Indian Air Force. The contenders for the mega deal were Lockheed Martin's F-16s, Eurofighter Typhoon, Russia's MiG-35, Sweden's Gripen, Boeing's F/A-18s and Dassault Aviation's Rafale. At the end of a prolonged process, bids were opened in December 2012 and Dassault Aviation emerged as L-1 (lowest bidder). In the original proposal, *18 planes were to be manufactured in France, to be delivered in fly-away condition, and 108 in India by the Hindustan Aeronautics Ltd in collaboration with the Dassault. *Negotiations between the then UPA government and Dassault on prices and transfer of technology commenced. The final negotiations continued, for about just over a year, till early 2014 but it remained inconclusive by the time the next Lok Sabha poll was notified. Subsequent to that, the UPA had to make way for the Modi-led NDA. (Ref.: https://www.theweek.in/news/india/2018/08/29/explained-rafale-deal-and-all-about-the-controversy.html and <http://www.defstrat.com/rafale-hits-and-misses>.) During his visit to France, Prime Minister Narendra Modi on April 10 2015, almost a year after taking over the reins, in a rather stunning move and delivering a major blow to the much-vaunted "Make in India", announced that India will purchase 36 Rafale jets, in fly-away condition, in a government-to-government agreement. (Ref.: < https://www.business-standard.com/article/economy-policy/india-france-agree-on-deal-for-36-rafale-jets-115041100049_1.html >.) *Major Issues* The major issues, as regards the new "deal", which stirred up controversies almost immediately, let's recall, are as under. 1. Non-disclosure of price, despite categorical public commitment by the Defence Minister on November 17 2017, reiterating the one by Defence Secretary. (Ref.: <https://www.youtube.com/watch?v=Z0qKRCG0IPM>.) Congress claims that per aircraft price has shot up from Rs. 520 (or 560?) crore to Rs. 1,600 crore - a quantum jump: < https://www.moneycontrol.com/news/politics/bring-jpc-india-wants-to-know-the-modi-ambani-deal-rahul-gandhi-2900671.html >. In absence of definitive "disclosure", there're other estimates as well. 2. Brushing aside of the mandatory procedure - prior scanning and clearance by the CCS. 3. Abrupt reduction in number to be procured - from 126 to 36, without any due diligence. 4. Scrapping of the earlier contemplated provision for transfer of technology. *5. Shocking displacement, all of a sudden, of the public sector HAL, having decades of experience in the specific field, by a private sector enterprise with no whatever experience and registered only days before announcement of the radically revised deal. * 6. Non-resort to re-bidding, the deal having been drastically reworked. (Ref. e.g.: < https://scroll.in/article/889602/yashwant-sinha-arun-shourie-prashant-bhushan-rafale-defence-scandal-is-larger-than-any-thus-far> and < https://scroll.in/latest/894022/rafale-modi-has-compromised-national-security-claim-yashwant-sinha-arun-shourie-prashant-bhushan>.) *Focal Point Now* The focal point, as has now emerged, is, however, how the PSU HAL, having decades of specialised experience in the field got displaced a completely new entrant, floated by Anil Ambani, only days back with a paid-up capital of Rs. 5 lakh (!), just like that. Let's have a look at the trajectory of developments, not in a linear fashion though. *Last Official Pronouncement on Dassault-HAL Negotiations before Trashing* Foreign Secretary, S Jaishankar, during his official press briefings, in response to a query, on April 8 2015, *on the occasion and eve of Indian Prime Minister's impending trip to France* and, then, other European nations: In terms of Rafale, my understanding is that *there are discussions under way between the French company, our Ministry of Defence, the HAL which is involved in this. These are ongoing discussions*. [Emphasis added.] These are very technical, detailed discussions. We do not mix up leadership level visits with deep details of ongoing defence contracts. That is on a different track. A leadership visit usually looks at big picture issues even in the security field. (Ref.: < https://www.mea.gov.in/Speeches-Statements.htm?dtl/25044/Transcript+of+Media+Briefing+by+Foreign+Secretary+on+Prime+Ministers+forthcoming+visits+to+France+Germany+and+Canada+8+April+2015>.) *That's just two days before the shocking announcement of the radically revised "deal" by Modi in Paris. Clearly underlines that the External Affairs Ministry was just nowhere in the loop.* One report claims that even the Defence Minister himself had been informed virtually on the very eve of Modi's departure for Paris, so that Parrikar is not taken by surprise when journalists ask him about the new "deal": On a warm Delhi evening on April 3, 2015, Defence Minister Manohar Parrikar had left his South Block office and was driving to catch his flight to Goa, when his mobile phone received an incoming call from the Prime Minister's Office. Could he come in urgently, an official asked, the PM would like to talk briefly. When Parrikar reached the PMO, Prime Minister Narendra Modi sprang a bombshell. Parrikar was told that, on Modi's forthcoming trip to Paris, he and French President Francois Hollande would announce an agreement for India to buy 36 Rafale fighters. During Modi's nine-day tour of France, Germany and Canada, Parrikar would have to manage the media and field the inevitable questions. (Ref.: '4 reasons why Rafale could ruin Modi and Parrikar's party', dtd. Sept. 23 2016, by Ajai Shukla at < http://www.rediff.com/news/column/four-reasons-why-rafale-could-ruin-modi-and-parrikars-party/20160923.htm >.) *Dassault CEO's Last Pronouncement on Negotiations with HAL, before Trashing* The Foreign Secretary's observation, let us be reminded, had come in the wake of the Dassault CEO's pronouncement, just about a fortnight back, on March 25 2015: *Rafale is the next logical step. HAL and Indian industries will contribute to the Make in India policy by developing and manufacturing it locally* [emphasis added]," he said. (Dassault CEO) Trapp(i)er hoped that the contract would be signed soon. "*It's 95% finalised* [emphasis added]. The contract is being reviewed with the Defence Ministry (India). I prefer we take time now than all the clarifications coming later," he told reporters at a Dassault facility here. (Ref.: < https://www.dnaindia.com/business/report-rafale-the-next-logical-step-under-make-in-india-dassault-aviation-2071878 >.) Pretty clear. As clear as it could be. *Work Share Agreement in March 2014* In fact, just over a year before the Dassault CEO announcing that the agreement between India and Dassault is "95% finalised", the work share agreement had been sealed: The Indian government and French aerospace major Dassault have sealed a work share agreement in what is being described as a big step forward, almost two years after negotiations began in the deal for 126 Rafale fighter jets to be bought by India. The government's Hindustan Aeronautics Limited or HAL will do 70 per cent of the work on the 108 planes that will be manufactured in India. Dassault would do the rest of the work, sources said. The first 18 of the fighters will be fully manufactured in France and will be brought to India in "fly-away" condition. (Ref.: < https://www.ndtv.com/india-news/a-big-step-in-indias-rafale-jet-deal-with-france-552565 >.) So, by all indications, things were pretty much on track. However, the time for the UPA government got over. But, the Dassault CEO's comment, indicating that the arrangement between the Dassault and the HAL was very much on track, came on March 25, was made almost a year after the Modi government had taken over, and a fortnight before the new "deal" would be announced. It would be subsequently reconfirmed by the then Foreign Secretary, just two days before the announcement, during his press briefings specifically to elaborate on the purpose of the impending trip of the Prime Minister to Europe, with France as the first stop. *Testimony of HAL CMD, on Retirement* The Dassault CEO's testimony would now be followed up with that of the just retired CMD of the HAL, in response to incumbent Defence Minister's claim that the HAL got dropped because of its incompetence: “When HAL can build a 25-tonne Sukhoi-30, a fourth-generation fighter jet that forms the mainstay of the air force, from raw material stage, then what are we talking about? We could have definitely done it (licence produced the Rafale jets),” said Raju, who retired (as the chief, the CMD, of the HAL) on September 1 (2018). (Ref.: < https://www.hindustantimes.com/india-news/hal-could-have-built-rafale-jets-in-india-says-former-boss/story-Cr0dMhZXToq1GBIdXY97YI.html >.) Here's a claim, dtd. Sept. 18, on HAL track record, on its behalf, listing out the various aircrafts it has produced over the decades, as yet uncontested, the twitter handle, as it transpires, has got nothing to do with the HAL though: Those who are saying that HAL is not capable of producing Rafale jets should know what we at HAL have produced MiG-21 MiG-27 Jaguar Hawk Sukhoi-30 Dornier 228 V hv also produced Light combat helicopter Light utility helicopter Chetak Dhruv Rudra (Ref.: < https://mobile.twitter.com/HAL_India/status/1042099750101643264?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwgr%5E373939313b636f6e74726f6c&ref_url=https%3A%2F%2Fd-34382670412199378398.ampproject.net%2F1809142227020%2Fframe.html >.) As can be seen, at the site, this was in response to Defence Ministry's tweet: Deal for procurement of 126 Rafale jets under UPA fell through as HAL did not have required capability to produce them: Nirmala Sitharaman. @DefenceMinIndia (Ref.: <https://twitter.com/PTI_News/status/1040244215865896960>.This is dated Sept 13 2018.) And, finally, the bombshell from Hollande: "We did not have a say in that. The Indian government proposed this service group, and Dassault negotiated with Ambani. We did not have a choice, we took the interlocutor we were given," said Hollande. The interview was published in French and excerpts of Hollande's interview were tweeted by French Newspaper LeMonde journalist Julien Boissou. ... (Rahul Gandhi:) The PM personally negotiated & changed the #Rafale deal behind closed doors. Thanks to François Hollande, we now know he personally delivered a deal worth billions of dollars to a bankrupt Anil Ambani. The PM has betrayed India. He has dishonoured the blood of our soldiers. ... Responding to Congress attacks on the government for keeping Hindustan Aeronautics Limited (HAL) out of the Rafale deal under offset clause, *both Finance Minister Arun Jaitley and Defence Minister Nirmala Sitharaman have been constantly stressing that Dassault and Reliance got into an agreement on their own* [emphasis added]. Former chairman and managing director (CMD) of HAL, T Suvarna Raju, in an interview to a media house claimed that Dassault and HAL had signed the mutual work-share contract and gave it to the government. He further said that the life-cycle costs of the aircraft would have been cheaper if they were made in India. (Ref.: < https://www.indiatoday.in/amp/india/story/rafale-dassault-reliance-ambani-former-french-president-hollande-1345942-2018-09-21 >.) It may be recalled here that while Prime Minister Modi had announced the "deal" on April 10 2015, the agreement would be signed on September 23 2016. (Ref.: < http://www.rediff.com/news/column/four-reasons-why-rafale-could-ruin-modi-and-parrikars-party/20160923.htm >.) Immediately thereafter, on October 3 2016, it was announced that the Dassault has chosen the Reliance Defence, led by Anil Ambani, as its new Indian (offset) partner. The total value of the offset components would be around Rs. 30,000 crore. The two companies have formed a joint venture, Reliance Aerospace, for the purpose. An integrated facility would be set up at Reliance Special Economic Zone (SEZ) in Nagpur. It was also indicated there would be some other (smaller) Indian (offset) partners. (Ref.: < https://www.thehindubusinessline.com/companies/rafale-deal-reliance-group-joins-hands-with-dassault-aviation-for-offset-contract/article9179897.ece> and < https://www.firstpost.com/business/anil-ambanis-reliance-group-ties-up-with-dassault-after-rafale-fighter-jet-deal-3031950.html >.) It'd later, on June 21 2017, be informed, that the Reliance share out of the Rs. 30,000 crore (approx) would be Rs. 21,000 crore (approx.). (Ref.: < https://www.thehindubusinessline.com/companies/reliance-defence-corners-offset-contracts-worth-21000-crore-on-rafale-deal/article9732240.ece >.) On October 27 2017 the foundation stone laying ceremony of the new facility was held (ref.: < https://www.financialexpress.com/industry/reliance-dassault-lay-foundation-stone-for-rs-6500-cr-dhirubhai-ambani-space-park-in-nagpur/909479/ >.) What is interesting, pretty much interesting, to note that even as late as on Feb. 7 2018, in a press release, the GoI, as reported by the media, claimed that “*no Indian Offset Partner for the 2016 deal for 36 Rafale Aircraft has been so far selected by the vendor (DA) because as per the applicable guidelines, DA is free to select the Indian Offset Partners and provide their details at the time of seeking offset credits, or one year prior to discharge of offset obligation*”. (Ref.: < https://www.financialexpress.com/defence/hollande-speak-india-gave-r-defence-name-as-rafale-partner/1322365/> and < https://www.financialexpress.com/defence/hollande-speak-india-gave-r-defence-name-as-rafale-partner/1322365/ >.) Never mind. *Responses to Hollande Remark* While the Government of India held its peace - with no official response to the subject Hollande comment, for a while, *the French government*, it appears was the first to get off the ground. (It won't be too unrealistic to visualise that SOS was sent from New Delhi to Paris, as the said comment has no adverse implications for that government, except, obviously, for the legitimacy of the "deal".) It *issued a rather bald, and pretty brief, statement*: The French government is in no manner involved in the choice of Indian industrial partners who have been, are being, or will be selected by French companies. In accordance with India’s acquisition procedure, French companies have the full freedom to choose the Indian partner companies that they consider to be the most relevant, *then present for the Indian government’s approval the offsets projects that they wish to execute in India with these local partners* [emphasis added] so as to fulfil their obligations in this regard. (Ref.: <https://in.ambafrance.org/India-15906>.) But, even then, as the emphasised portion shows, it's rather interesting. *It clearly asserts that while the French government has no role in selection of its partner by the French vendor, it has got to be vetted by the Indian government. Thus, the Indian government has a decisive role, rather legitimately, in the approval of the partner, even if not at the time of initial selection*. *The next to enter the field is the Dassault*: (I)n accordance with the policy of Make in India, Dassault Aviation has decided to make a partnership with India’s Reliance Group. This is Dassault Aviation’s choice, as CEO Eric Trappier had explained in an interview published in MINT newspaper on April 17, 2018. This partnership has led to the creation of the Dassault Reliance Aerospace Ltd (DRAL) joint-venture in February 2017. Dassault Aviation and Reliance have built a plant in Nagpur for manufacturing parts for Falcon and Rafale aircraft. The Nagpur site was chosen because of the availability of land with direct access to an airport runway, an essential condition of aeronautic activities. (Ref.: < https://www.dassault-aviation.com/en/group/press/press-kits/rafale-contract-india/ >.) *Even this avoids making any direct comment on Hollande's claim*. *Finally, the GoI. On the following day*. It's a rather long-winded response. By far the longest of the three. The operative part is: Dassault Aviation has issued a Press Release stating that it has signed partnership agreement with several companies and is negotiating with hundred odd other companies. As per the guidelines, the vendor is to provide the details of the offset partners either at the time of seeking offset credit or one year prior to discharge of offset obligation, which in this case will be due from 2020. In view of above, it is once again reiterated that the Government of India has no role in the selection of Indian Offset partner which is a commercial decision of the OEM. (Ref.: <http://www.pib.nic.in/PressReleaseIframePage.aspx?PRID=1546952>. *The release, however, interjects a decidedly and deliberately misleading observation*: It has been reported that a JV between Reliance Defence and Dassault Aviation came into being in February, 2017. This is a purely commercial arrangement between two private companies. Incidentally, media reports of February, 2012 suggest that Dassault Aviation, within two weeks of being declared the lowest bidder for procurement of 126 aircraft by the previous Government, had entered into a pact for partnership with Reliance Industries in Defence sector. *It's misleading at two levels*. One, the "Reliance Industries" has got nothing to do with Anil Ambani, the newly chosen partner of the Dassault. In fact, it's led by his elder brother, (reportedly) a bitter and much more successful competitor Mukesh Ambani. The two brothers had fallen out and parted ways back in 2006, (Ref.: <https://www.diffen.com/difference/Anil_Ambani_vs_Mukesh_Ambani> and < https://www.bloombergquint.com/markets/2017/11/23/ambani-vs-ambani-life-after-the-split#gs.gxEE1PE >.) Two, as recently as on March 25 2015 the Dassault CEO publicly indicated that its relationship with the HAL was quite on track. It'd be sort of reconfirmed by the Indian Foreign Secy. on the following April 8. And the work share agreement between the Dassaut and the HAL had been signed a year earlier, more than two years after the Dassault and the RIL joining hands in Feb. 2012 (ref.: < https://www.telegraphindia.com/business/dassault-joins-hands-with-reliance/cid/448761 >.) *The press release has also peddled an oft-repeated claim, patently contrary to facts*: As per Defence Offset Guidelines, the foreign Original Equipment Manufacturer (OEM) is free to select any Indian company as its offset partner. Of course, the GoI has no formal role in selecting the partner, even then, it could very well have made its preference and the implications of non-compliance clear, behind closed doors, but, even formally, it has the decisive role in vetting the partner chosen by the Dassault, as has been unambiguously underlined by the French press release, as pointed out above. In fact, the 'Defence Offset Guidelines, April 1, 2016', as per its cl. 8.6, provides that all offset proposals will (have to) be approved by the "Raksha Mantri" (Defence Minister). And, the subsequent cl. 8.11 further provides that the Defence Offsets Management Wing (DOMW) may (even) recommend change in offset partner. (Ref.: Annexure 7 at < https://scroll.in/article/889602/yashwant-sinha-arun-shourie-prashant-bhushan-rafale-defence-scandal-is-larger-than-any-thus-far >.) *That evidently nails the lie that the GoI has no role in Indian (offset) partner selection.* *Even more relevant here is the observation made by Arun Shourie, a Former Commece Minister under Vajpayee*: People do not seem to remember that Dassault was actually a company in dire straits. It was not getting orders. This was a life-saving order for it. You could certainly imply to them [the French government and Dassault] that if you do not now exculpate the Indian government, then we will have to review the contract. This statement is too convenient. Look at Hollande. He was the one who was talking to Prime Minister Narendra Modi. Modi did not talk to the French defence minister. He did not talk to his own foreign secretary. The CEO of Dassault said just 10 days before the deal was signed that they were very satisfied with the Hindustan Aeronautics Limited. In fact, he said we have a work share agreement with them. The HAL chairman was there. Now, suddenly Anil Ambani, who has no experience, will help like a magic potion with components that are high technology. (Ref.: < https://scroll.in/article/895410/the-rafale-interview-with-arun-shourie-modi-was-embracing-hollande-then-is-he-a-liar-now >.) To be read together with: If you look at the offset agreement, the work to be done is related to very advanced technology in defence and especially aerodefence. This company had no experience whatsoever. So, this is not one lie. This is such shamelessness. Also extremely telling and relevant: He did not say they suggested. He said they left us with no choice. The suggestion was so firm. The first point about this is that it nails yet another lie of this government. They have not yet offered an explanation as to how they changed the deal from 126 planes to 36 planes. Defence Minister Nirmala Sitaraman said we did not have the infrastructure to build 126 planes. But the planes are not going to come today. They will come by 2022. You can spend, by an initial estimate, Rs 1,20,000 crore on one bullet train from Ahmedabad to Mumbai, you can spend Rs 3,500 crore on one statue [Vallabhbhai Patel’s in Gujarat], you can spend Rs 4,000 crore on advertisements of the prime minister, but you cannot spare money for the infrastructure our air force needs. How much more idiotic can a minister get? So, one lie after another. First, the change from 126 planes to 36 planes. Then, the selection of Reliance, a group with a debt of Rs 1,21,000 crore at that time. And they had no experience [making aircraft]. They said they have acquired Pipavav [in Gujarat]. But actually that company was doing work on naval vessels. They were to supply five offshore petrol vessels. That also they have not supplied. As usual, Anil Ambani has raised a dispute with them. That company was in fact taken to the bankruptcy board. *Then the release has yet another (apparently) clever subterfuge*: The reported statement perhaps needs to be seen in its full context – where the French media has raised issues of conflict of interest involving persons close to the former President. His subsequent statements are also relevant in this regard. It has two components. One, it hints that the former French President has a conflict of interest as his partner is an actor in a film partly funded by the Anil Ambani group. True, on the face of it. But then the GoI, which has negotiated and concluded the "deal" and the Dassault and the French government have very much similar, if not even stronger, conflicts of interest, being party to the deal, as regards revealing the truths about it. Two, here's a citation, by, understandably, the most prestigious French newspaper, of a "second" comment by Hollande, on the subject issue: Asked by Agence France-Presse on the sidelines of a conference he gave Friday in Montreal, Mr. Hollande stressed that the name of Reliance Group had appeared in the context of the "new formula" of negotiations on the purchase Rafale, decided by the Modi government after taking office. (Ref.: < https://www.lemonde.fr/politique/article/2018/09/22/vente-de-rafale-a-l-inde-francois-hollande-et-julie-gayet-au-coeur-de-la-polemique_5358681_823448.html?utm_term=Autofeed&utm_medium=Social&utm_source=Twitter#Echobox=1537600979 >.) It is preceded by: Indian and French officials say that the French aircraft manufacturer has freely chosen to partner with Reliance Group, led by the magnate Anil Ambani. This company had no prior experience in aeronautics. "We did not have a say in that. (...) We took the interlocutor that was given to us," said the former President of the French Republic (2012-2017) François Hollande (to) Mediapart . "It is the Indian government that has proposed this group of services, and Dassault who negotiated with Ambani." There's no contradiction between the two sets of comment. Here, it, however, needs be pointed that the drum beaters of the incumbent regime have flaunted a fragment of Hollande's subsequent comment: Amid the raging storm over Rafale deal, Former French President Francois Hollande issued a clear denial on Saturday and said he was 'unaware' on India putting pressure for taking Reliance on board for the deal. When asked by French news agency AFP whether India had put pressure on Reliance and Dassault to work together, Hollande said he was “unaware” and “only Dassault can comment on this.” (Ref.: 'Rafale Row: Francois Hollande Issues Clear Denial, Says ‘unaware’ Of Pressure Put By India For Selecting Reliance As Partner', dtd. Sept. 22, at < https://www.republicworld.com/india-news/general-news/rafale-row-francois-hollande-issues-clear-denial-says-unaware-of-pressure-put-by-india-for-selecting-reliance-as-partner >.) The presentation by the original source, referred to above, however, gives out a balanced and, visibly, different picture: We did not have a say in that," Hollande told investigative website Mediapart. "It was the Indian government that proposed this service group (Reliance), and Dassault who negotiated with Ambani. "We did not have a choice, we took the interlocutor who was given to us," added Hollande, who was president of France from 2012-2017. ... Speaking to AFP on the sidelines of a meeting in Canada on Friday, the former French leader insisted that France "did not choose Reliance in any way". When asked whether India had put pressure on Reliance and Dassault to work together, Hollande said he was unaware and "only Dassault can comment on this". (Ref.: 'Hollande fuels Rafale fighter jet controversy in India', dtd. Sept. 22, at < https://www.afp.com/en/news/23/hollande-fuels-rafale-fighter-jet-controversy-india-doc-19b4634 >.) Coming back to the issue of response from the French government, there's an interesting and insightful update: Responding to remarks by former French president Francois Hollande that the Indian government had “proposed” Anil Ambani’s Reliance Defence as the offset partner for Dassault Aviation in the Rafale aircraft deal, the French Secretary of State for Foreign Affairs, Jean-Baptiste Lemoyne, said Sunday that Hollande’s statements “render no service to France”. Significantly, Lemoyne, who is equivalent of an Indian Minister of State, did not contradict the remarks made by Hollande in any manner or counter the former president’s allegation that the French “didn’t have a choice” as Ambani’s Reliance Defence “was given to us” by the Indian government as an offset partner for the Rs 59,000-crore deal. Lemoyne told Radio J in France, “I believe that this small observation made abroad concerning the important relations between France and India does not do anyone any service, and certainly renders no service to France.” He added, “”As one is no longer in office, one is not best placed to reflect on a situation about aspects of the strategic partnership between India and France that have clearly aroused controversy in India.” ... In a statement issued on Saturday, wading uncharacteristically into domestic French politics, the Defence Ministry said that, “The reported statement perhaps needs to be seen in its full context — where the French media has raised issues of conflict of interest involving persons close to the former president. His subsequent statements are also relevant in this regard.” This was a reference to a report in The Indian Express on August 31 that on January 24, 2016, Reliance Entertainment had announced entering into an agreement with Hollande’s partner Julie Gayet’s firm, Rouge International, to jointly produce a French film. Two days later, Prime Minister Narendra Modi and Hollande had signed an MoU in New Delhi for the purchase of 36 French jets in flyaway condition. Hollande told Mediapart.fr that he was not aware of the announcement of the film with Gayet during his visit to India as he was busy with matters of the State. According to Mediapart, the film was made on a budget of Euro 10 million, which included promised Indian funding by Reliance Entertainment of Euro 3 million, eventually reduced to Euro 1.6 million. The funding was done through Visvires Capital, an investment fund founded by Ravi Viswanathan, a French citizen of Indian origin and a friend of Ambani. (Ref.: ‘Rafale controversy: Francois Hollande doing no service to country, says French official’, dtd. Sept. 24, at < https://indianexpress.com/article/india/rafale-controversy-francois-hollande-doing-no-service-to-country-says-french-official-5371078/ >.) That clearly shows up the serious concern of the current French regime to protect the "reputation" of the Modi regime in India. *Rather noteworthy is the fact that the French Minister simply overlooked the claim of Hollande having contradicted himself*. That apart, on a broader level, it's not really inconceivable that while Modi, who virtually singlehandedly steered the new "deal" till announcement, pushed the case of Anil Ambani - and that's plausibly why and how the deal got completely reworked without any CCS vetting and any inputs from the user department, for reasons not too difficult to think of, Hollande also took advantage of the situation - arising out of the sheer untenability of the Reliance Defence as the French vendor's Indian offset partner, and extracted his, whatever little, pound of flesh. In this context, worth noting is the ToI observation as a part of the report on the subject response from France: The choice of Reliance for a highly strategic contract to upgrade India's ageing fleet of fighter jets had caused surprise at the time because the group had no previous experience in the aeronautics industry. (Ref.: 'France fears damage to India ties after Hollande fans controversy over Rafale deal' at < https://m.timesofindia.com/india/france-fears-damage-to-india-ties-after-hollande-fans-controversy-over-rafale-deal/amp_articleshow/65924373.cms>.) It's rather difficult to imagine, the French government's contrary claims notwithstanding, that while the French government will stand guarantor for the quality and timely delivery of the Rafale jets, it'll have to do so without having any say in the matter of selection of partners by the French vendor. Now, under pressure, Hollande has opted to spill the beans, maybe rather selectively, to clear his own name. *Quite significant is the fact that Hollande didn't argue, in his self-defence, that the French government had no role in selection of the French vendor's Indian offset partner(s). That'd have been so much simpler for him, had it really been a valid argument*. In any case, now, in the process, all the players stand the risk of getting sucked into the quagmire, deeper and deeper. That's, presumably why, the different players are using rather restrained language and trying utmost not to provoke others. But that may not help. *Responses from Indian Politicians* Be that as it may, post these developments, Rahul Gandhi came out in full combat mode: Armed with a statement of former French President Francois Hollande, Congress president Rahul Gandhi on Saturday (Sept. 22) launched a blistering attack on Prime Minister Narendra Modi. Mr. Gandhi alleged that the evidence of corruption in the Rafale deal — which was exclusively negotiated by Mr. Modi to hand over a ₹30,000 crore contract to industrialist Anil Ambani — was undeniable. ... “We are absolutely convinced that the Prime Minister of India is corrupt. This question is clearly settled into minds of people that Desh Ka Chowkidar Chor Hai (the country’s watchman is a thief),” Mr. Gandhi said on Saturday. Mr. Gandhi was addressing a press conference in the national capital on comments made by former French President Francois Hollande on Friday that Dassault Aviation (manufacturers of Rafale fighter aircraft) was given no choice but to partner with Anil Ambani-led Reliance Defence for the offset clause in the fighter jet deal. Midway through the press conference, directly addressing the “youth” of the country Mr. Gandhi said, “Do remember, that Prime Minister Narendra Modi, the man you trusted, has personally handed over ₹30,000 crore contract to Anil Ambani, who never made aircraft in his life. He took money from your pockets to put it in Mr Ambani’s pocket,” Mr. Gandhi said. (Ref.: 'Clear-cut corruption in Rafale deal, PM must clarify stance, says Rahul Gandhi', dtd. Sept. 22, at < https://www.thehindu.com/news/national/clear-cut-corruption-in-rafale-deal-pm-must-clear-stand-says-rahul-gandhi/article25015305.ece >.) Nirmala Sitharaman, the Indian Defence Minister had earlier come out with an even more raucous tweet, the same day morning: The @INCIndia & Shri. @RahulGandhi repeat untruth several times and use brazen & abusive language about @PMOIndia @narendramodi. They betray their sense of desperation in being out-of-power. In our govt there is no corruption. No wonder today the buzz is #RahulKaPuraKhandanChor (Ref.: <https://twitter.com/nsitharaman/status/1043525438730121216>.) The abuse that all of Rahul's ancestors are thieves, hurled by the Indian Defence Minister, is, understandably, an indicator of how much the regime has got rattled. In any case, Ms Sitharaman was not alone: Since Saturday, several Bharatiya Janata Party leaders, including Home Minister Rajnath Singh and Sitharaman, have refuted allegations made by the Congress against the Narendra Modi-led administration. (Ref.: < https://scroll.in/latest/895540/rafale-deal-rahul-gandhi-says-arun-jaitley-is-trying-to-defend-the-indefensible >.) In reply, Rahul Gandhi, apart from countering abuse with abuse, repeated an earlier point, this time, perhaps, way more convincingly – thanks to Hollande, out of the blue, (sort of) joining the cacophony, by asking for "a Joint Parliamentary Committee to establish the full, uncorrupted truth.” (Ref.: ibid.) *Latest Updates* The BJP, deeply shaken by the unexpected turn of events has launched a blitzkrieg of campaign, with a helping hand extended by the mainstream media and backed up by its own social media networks, against its opponents on this issue. And it has made no secret of it either: Defence Minister Nirmala Sitharaman, referring to the Congress broadside on the Rafale jet deal, said today that she would lead a nationwide campaign to "fight the perception battle" with a series of press conferences. "We need to fight the perception battle. Many of us will be speaking across the country. Facts have to come out," Nirmala Sitharaman said. The minister also targeted Congress president Rahul Gandhi, saying his allegations had an "international dimension" and would be exposed. (Ref.: ‘"Perception Battle, Will Fight It": Nirmala Sitharaman On Rafale Row ‘, dtd. Sept. 24, at < https://www.ndtv.com/india-news/rahul-gandhis-rafale-allegations-have-international-dimensions-says-defence-minister-nirmala-sithara-1921370 >.) Just one random sample of these campaign lines: HAL, *sources* [emphasis added] in favour of the deal say, never had any interest in serving as an offset partner -- instead it wanted to build the main structure of the fighter jets here. (Ref.: ‘Why We Chose Anil Ambani's Firm Despite Massive Debt: Dassault Sources ‘, dtd. Sept. 24, at < https://www.ndtv.com/india-news/rafale-deal-anil-ambanis-firm-was-registered-had-land-near-airport-dassault-defence-1921482 >.) Quite oblivious of the fact that only the other day the Defence Minister herself had tweeted that the reason for dropping the HAL is its incompetence (ref.: <https://twitter.com/PTI_News/status/1040244215865896960>), which would be strongly rebutted by none other than its just retired CMD (ref.: ‘HAL could have built Rafale jets in India, says former boss ‘, dtd. Sept. 20, at < https://www.hindustantimes.com/india-news/hal-could-have-built-rafale-jets-in-india-says-former-boss/story-Cr0dMhZXToq1GBIdXY97YI.html >). Yet another indicator of the desperation, as it seems. The talk of “exposing” an "international dimension", in that context, sounds only too ominous. *While on this, it won’t be quite out of place to recall that during the campaign for the last Gujarat assembly poll, the Prime Minister Modi had hurled the charge of treason against his immediate predecessor (from the Congress) and the previous Vice President of the country only to be tamely withdrawn by Leader of the House, Arun Jaitley, on behalf of his boss, on the floor of the parliament, the Gujarat poll by that time having been over with the results announced and the purpose of garnering some additional votes having been achieved.* (Ref.: <https://twitter.com/officeofrg/status/946038581306441728?lang=en>.) In any case, Rahul Gandhi has come back by circulating a video clip: ‘'Sad Truth About PM Modi': Rahul Gandhi Releases French Media House Video on Rafale Deal', dtd. Sept. 24, at < https://www.news18.com/news/politics/sad-truth-about-pm-modi-rahul-gandhi-releases-french-media-house-video-on-rafale-deal-1887865.html>. It’s a rather foregone conclusion that, at least for now and most likely till the coming Lok Sabha poll, the back and forth would continue unabated. *Summary* As it has been pointed out, at the very outset itself that the new "deal" announced by Indian Prime Minister Modi on April 10 2015, in Paris, about which even his own Foreign Secretary - the senior-most bureaucrat in the External Affairs Ministry, which should be the nodal ministry as regards agreements with foreign governments, tasked with the briefings to the media on the PM's impending visit, had just no inkling, has six major issues. But, what has now come to the very fore is how a PSU, specialised in the specific field with decades of extensive experience (ref.: < https://en.wikipedia.org/wiki/Hindustan_Aeronautics_Limited>) got to be, all of a sudden, replaced by a private entity, with no whatever experience in the field, to be bestowed with a contract valuing around Rs. 20,000 crore. The stock argument put forward by this government, has also again been tweeted by the Finance Minister, the most articulate one in the Union Cabinet (?), that has been retweeted by the Defence Minister is: The offset partner is selected entirely by the Dassault Aviation, the original equipment manufacturer, and neither the French Government and nor the Indian Government has any say in the matter. (Ref.: <https://twitter.com/arunjaitley/status/1043720297847906305>.) This has been clearly contradicted, as far as the role of the GoI is concerned, by the press release issued by the French government and also by the provisions in the 'Defence Offset Guidelines, April 1, 2016', as has been elaborated above. The circumstances, under which the French vendor, apparently, got arm-twisted, have been rather tellingly enumerated by Arun Shourie, in a recent interview, cited above. The Prime Minister of India, who's at the very centre of the raging controversy, has just kept his lips sealed, on this particular issue. Former French President Hollande's testimony has made the things only even murkier. Under the circumstances, the demand for a detailed investigation by a duly formed Joint Parliamentary Committee (JPC) is the only logical way ahead. Indian democracy has to demonstrate its credibility by making the regime accede to this demand. -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. Visit this group at https://groups.google.com/group/greenyouth. For more options, visit https://groups.google.com/d/optout.
