Rafale allegations motivated and baseless: Sitharaman

NEW DELHI: Defence Minister Nirmala Sitharaman on Wednesday rejected allegations that Rafale fighter jets being bought by India from France are priced higher than under an earlier deal, and said the charges were “motivated and baseless”.

“The allegations are motivated and baseless. The government has bought Rafale aircraft on better terms,” Sitharaman said in a written reply to the Lok Sabha. She said that the Defence Procurement Procedure was followed for the deal and an InterGovernmental Agreement signed on September 23, 2016, after approval from the Cabinet Committee on Security.

Earlier this week, Sitharaman, in a written reply to the Rajya Sabha, had said the price of the 36 Rafale aircraft under the present deal cannot be compared with the cost of the original MMRCA (Medium Multi-Role Combat Aircraft) deal, but added that the present deal had better terms.

The MMRCA proposal was for the procurement of 126 aircraft, as per which 18 aircraft were to be in flyaway condition whereas 108 aircraft were to be manufactured in India under licence.

In the present deal, 36 Rafale aircraft are being procured in flyaway condition. “There is no increase in the cost. Instead, a better price has been ensured,” Sitharaman said.

“The cost of the 36 Rafale aircraft cannot be directly compared with the cost under the original MMRCA proposal as deliverables are significantly different. Though there is no transfer of technology in the procurement of the 36 aircraft, the provision of 50 per cent offsets has been retained.”