Reacting to The Hindu ’s report that said Prime Minister Narendra Modi’s decision to buy 36 Rafale jets came at a cost which was 41 per cent higher than the rate negotiated by the UPA government for buying 126 aircraft, the Congress has said that Dassault, the manufacturer, got undue financial benefits.

The party also reiterated the demand that the deal deserves to be examined thoroughly by a Joint Parliamentary Committee of Parliament.

‘Serious issues’

Talking to reporters here on Friday, former Finance Minister P Chidambaram said Dassault is laughing all the way to the bank.

“The government has wronged the country in two ways: First, it has compromised national security by denying the Air Force 90 fighter aircraft that they desperately need; second, it has purchased two squadrons that will cost about € 25 million more per aircraft. At the 2016 exchange rate, €25 million is equal to ₹186 crore! India will pay ₹186 crore more per aircraft!” Chidambaram said.

He said the price negotiated by the UPA government in 2007 was €79.3 million per bare-bones aircraft.

“In 2011, that price had escalated to €100.85 million per aircraft. In 2016, the ‘discount’ of 9 per cent negotiated by the NDA government brought down the price (presumably after factoring in the escalation between 2011 and 2016) to €91.75 million,” he said.

He said The Hindu’ s story raises many other serious issues about the process of decision-making in the NDA government.

“The man who got away was Manohar Parrikar who passed the buck to the Cabinet Committee on Security! Clever man! We will not comment on the process today. However, it is necessary to compliment the three officers of the Indian negotiating team who stood up to pressure and forced a vote of 4-3 on every issue,” he added.

Countering the Centre’s arguments, Chidambaram said India-specific enhancements would have to be paid whether the government bought 126 or 36 aircraft. “That price should have been amortised over 126 aircraft. It is being amortised over 36 aircraft. That is a windfall for Dassault,” he said. “If you amortise over a smaller number, and recover it in a shorter period, the net present value of what you get is much more. And that is the gift which the NDA government has given to Dassault, and that is why I said Dassault is laughing all the way to the Bank,” he said.

‘Only a panel can examine’

The Rajya Sabha member said such matters can only be examined by a Parliamentary committee.

“We want a Parliamentary Committee to sit across the table, see the papers, question officers, compare one file with another, look at the minutes and then come to a conclusion. This cannot be done in a court system where all you have is two lawyers or two sets of lawyers arguing. These are not amenable to judicial decision making,” he added.

comment COMMENT NOW