Rafale deal – looking for corruption where there is none

During the last four-and-a-half years of his term, prime minister, Modi has brought about a metaphorical change in the very institution of governance – its central point being ‘honesty’ and complete ‘transparency’ in its wheeling-dealing with all stakeholders and the public at large.

The running theme in all the governance processes is zero tolerance for corruption which is very aptly encapsulated in the euphemism coined by him ‘naa khaoonga, naa khane doonga’ [neither, I will take bribe nor let anyone else take]. Modi has not merely talked about it but demonstrated through his actions.

Even his most ardent critics are unable to pinpoint a shred of evidence about corruption or nepotism in any of the departments/ministries or undertakings/agencies coming under its jurisdiction and control; forget about any scam that was symptomatic of erstwhile dispensation under UPA led by Congress.

Yet, desperate to look for corruption where it does not exist, the grand old party has now zeroed on the Rafale deal to fabricate a mountain of lies to make the charges stick on the present dispensation. In the process of manufacturing such fabrications, it has come up with numbers and arguments which defy common sense and logic by any stretch of imagination.

In 2016, Modi – government had entered into an inter-government agreement [IGA] with French government to import 36 multi-role combat fighter planes in fly-away condition as against the proposal of the then UPA – dispensation in 2012 for procuring 126 of such planes from Dassault [of these, 18 were to come in fly-away condition and remaining 108 to be manufactured locally under an arrangement with Hindustan Aeronautics Limited (HAL)].

In its zeal to show that Team Modi has done the deal at a price substantially higher than what UPA had agreed to pay, Congress is comparing the cost of a fully loaded/weaponized machine to be imported by the former now [read: 2016] with the price of a bare aircraft and that too in 2012. With such lop-sided comparison [instead of being done on a like-to-like basis], the results are bound to be seriously flawed and misleading.

The price of a bare aircraft as accepted by the UPA in March 2012 was Rs 538 crore. As against this, the price of a fully loaded machine being imported now by present government under IGA is Rs 1618 crore. With this, the grand old party concludes that Modi is importing at thrice the price thereby causing [allegedly] huge loss of national resources! But, the reality is entirely different.

First, accounting for price escalation [accepted by UPA], the cost of bare aircraft would have increased to Rs 737 crore by 2016. Against this, the corresponding price paid by Modi – government is Rs 670 crore or 9% less. Second, the price of the aircraft with necessary weaponisation [as per UPA – accepted specifications] would be Rs 2023 crore whereas, Modi is getting a fully loaded machine – with enhanced strike capability, technology, equipment and performance-based logistics – at 20% less.

Under the requirements of offsets, the foreign company securing the contract [Dassault] is under an obligation to give business to Indian companies equal to 50% of the value of contract about Rs 30,000 crore [Rs 60,000 crore being the purchase price for 36 aircrafts]. It can be by way of providing maintenance services or supply of spare parts or in any other form – not necessarily related to execution of the main contract.

To which Indian company/companies, this business has to be given? This is entirely the prerogative of the supplier [read: Dassault] even as the buyer Government of India [GOI] has no role in it. In this backdrop, for Congress to say that Modi has given the offset business for the entire value to only one company [reference is to an entity owned by Anil Ambani] is preposterous.

The reality is that orders worth Rs 30,000 crore are being distributed among 72 companies which include Defence Research and Development Organization [DRDO], Bharat Electronics Limited [BEL], Hindustan Aeronautics Limited [HAL] and Tata etc. Anil Ambani’s company is only one among those 72 entities.

What makes things bizarre is a charge that Mr Ambani has been granted a bonanza of Rs 45,000 crore. With as many as 72 companies sharing the pie, Anil Ambani would get a fraction of the total business or say a little over Rs 400 crore – assuming equal distribution. Even with 100% return [unthinkable], it will take him several decades to reach an aggregate gain of Rs 45,000 crore.

Since, the import of fighter planes is being done under an inter-government agreement with no middle-men in the picture [unlike defence deals done under previous dispensations wherein, their involvement was indispensable], there is absolutely no room whatsoever of corruption money exchanging hands. Yet, the Congress firmly believes that there is slush money in this; that it is a scam of unprecedented dimensions.

In an interview, the defence minister, Nirmala Sitharaman is reported to have said that for now, procurement of aircraft was restricted to 36 because of the non-availability of required infrastructure to accommodate a much larger fleet of 126 needed for the Indian Air Force [IAF]. Congress views this as amounting to serious compromise on national security.

Coming from a party that had delayed things by more than a decade – despite the IAF sounding alarm bell over the depleting squadrons strength – culminating in the virtual abandonment of the process in 2012, the talk of Modi – dispensation jeopardizing national security is laughable, to say the least.

To conclude, there is not an iota of corruption in the Rafale deal. Yet, if Congress is looking for it, this is out of sheer political opportunism [or simply because it hates the present prime minister]. The public must not let its faith in Modi to be dampened by the nefarious propaganda launched by it.

 

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