DefMin says Govt had no say in commercial call; Cong accuses Centre of complicity helping private player

In a significant development, a French media report quoted former French President Francois Hollande as purportedly saying that the Indian Government proposed Reliance Defence as the partner for Dassault Aviation in the Rs 58,000 crore Rafale jet fighter deal and France did not have a choice.

Reacting to Hollande’s remark that is at variance with the stand taken by the Indian Government, the Defence Ministry spokesman said on Friday, “The report referring to former French President Hollande’s statement that Government of India insisted upon a particular firm as offset partner for the Dassault Aviation in Rafale is being verified.”

The spokesperson said, “It is reiterated that neither the Government nor the French Government had any say in the commercial decision.”

Dassault Aviation, the makers of Rafale, had chosen Reliance Defence as its partner to fulfill offset obligations of the deal. The Government has been maintaining it did not have any role in selection of the offset partner.

Hollande’s remark has escalated the political slugfest over the multi-billion dollar deal. The French media report quoted Hollande as saying, “We did not have a say in this...The Indian Government proposed this service group and Dassault negotiated with (Anil) Ambani group. We did not have a choice, we took the partner who was given to us.”

The Congress and other Opposition parties latched on to the report and stepped up their attack on the Modi Government over the deal. The Congress alleged that the Government’s “complicity, collusion and conspiracy” to benefit Prime Minister Narendra Modi’s “crony friend” has been exposed following Hollande’s reported comments. “Cat’s out of the Bag!!! Complicity, Collusion & Conspiracy of Modi Govt in denying the PSU, HAL a Rs 30,000 crore ‘offset contract’ to benefit PM’s crony friend exposed!” Congress’ chief spokesperson Randeep Surjewala tweeted.

Congress leader P Chidambaram said, “In the NDA-negotiated Rafale aircraft deal, we have got no aircraft, we have got only lies. What is the new lie that the government will put out in response to Mr Hollande?” 

“President (Former) Francois Hollande should also enlighten us how the price went up from Rs 590 crore in 2012 to Rs 1,690 crore in 2015 per Rafale fighter jet? Escalation of a mere Rs 1,100 crore. I am sure the Euro equivalent would not be a problem to calculate,” Congress spokesperson Manish Tewari tweeted.

Modi had announced the procurement of 36 Rafale jets after holding talks with then French President Hollande on April 10, 2015 in Paris.

The Opposition has been accusing the Government of choosing Reliance Defence over State-run Hindustan Aeronautics Ltd to benefit the private firm.