“I will be very clear. It was a government-to-government discussion and I just want to refer to what Prime Minister (Narendra) Modi very clearly said a few days ago,” Macron told reporters here Tuesday without elaborating.
French President Emmanuel Macron has said that the Rafale deal was a “government-to-government” discussion and he was not in power when the multi-billion dollar agreement for 36 fighter jets was signed between India and France.
Addressing a press conference on the sidelines of the UN General Assembly session, Macron was asked if the Indian government had at any point told France or Dassault - the French aerospace major - that they had to accept Reliance as the Indian partner for the Rafale deal.
India had inked an inter-governmental agreement with France in September last year for procurement of 36 Rafale fighter jets at a cost of around Rs 58,000 crore, nearly one- and-half years after Prime Minister Narendra Modi announced the proposal during a visit to Paris. The delivery of the jets is scheduled to begin from September, 2019.
“I will be very clear. It was a government-to-government discussion and I just want to refer to what Prime Minister (Narendra) Modi very clearly said a few days ago,” Macron told reporters here Tuesday without elaborating.
“I don’t have any other comment. I was not in charge at that time and I know that we have very clear rules,” he said in his first comment on the issue.
Macron, who assumed the presidency in May last year, emphasised that this is a government-to-government discussion and “this contract is part of a broader framework which is military and defence” coalition between India and France.
“This one is very important to me because this is a strategic” coalition and not just an industrial relation. “That is my point. I just want to refer to what PM Modi said on this situation,” he said.
A huge controversy over the Rafale deal has erupted in India after a report in the French media quoted former president Francois Hollande as saying that the selection of the Indian company in the Rafale deal was done at the behest of New Delhi.
Hollande said that the Indian government proposed Reliance Defence as the partner for the French aerospace giant in the Rs 58,000 crore Rafale deal and France did not have a choice.
His comments to ‘Mediapart’, a French language publication, triggered sharp reactions from the opposition parties which have been accusing the government of massive irregularities in the deal and benefiting Reliance Defence Limited despite not having any experience in the aerospace sector.
The Congress party recently raised several questions about the deal including the rates, and accused the government of compromising national interest and security while promoting “crony capitalism” and causing a loss to the public exchequer.
The report quoted Hollande as saying, “It was the Indian government that proposed this service group, and Dassault which negotiated with Ambani. We had no choice, we took the interlocutor who was given to us.” Prime Minister Modi had announced the procurement of a batch of 36 Rafale jets after holding talks with then French president Hollande on April 10, 2015 in Paris. The final deal was sealed on September 23, 2016.
The French government has said it was in no manner involved in the choice of Indian industrial partners.
In its statement, Dassault Aviation said the contract for supply of 36 Rafale jets is a government-to-government agreement, adding “It provides for a separate contract in which Dassault Aviation commits to make compensation investments (offsets) in India worth 50 per cent of the value of the purchase.” The company also said its partnership with Reliance has led to the creation of the Dassault Reliance Aerospace Ltd (DRAL) joint-venture in February 2017.
Rafale affair - what you should know
The Rafale affair or as the French say L’affaire Rafale, blew up in a big way after former French President Francois Hollande was quoted saying that the Indian government proposed Anil Ambani's Reliance Defence as Dassault Aviation's partner in multi-billion dollar Rafale jet deal and France did not have a choice. In case you’re just joining us, here’s what we know so far.
What exactly did Hollande say?
The report in 'Mediapart', a French language publication, quoted Hollande as saying, "It was the Indian government that proposed this service group, and Dassault which negotiated with Ambani. We had no choice, we took the interlocutor who was given to us." Asked who selected Reliance as a partner and why, Hollande replied, "We had no say in this regard." 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 by Dassault.
What Nirmala Sitharaman had said
Nirmala Sitharaman had denied suggesting Reliance Defence and had clearly stated on 18 September 2018 and quoted saying by India Today: “I've not put his (Anil Ambani) name in the agreement. I can't tell a commercial entity who to go with. That's a commercial decision. Why will I go into it’ I don't have any vendor in this case except for Dassault".
Defence Ministry Statement
Reacting to Hollande's reported remark that is at variance with the Indian government's position, a defence ministry spokesman said, "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 also said, "It is reiterated that neither the government nor the French government had any say in the commercial decision."
The French Statement
The French government Friday said it was in no manner involved in the choice of Indian industrial partners for the Rafale fighter jet deal, asserting that French companies have the full freedom to select Indian firms for the contract.
"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," it said.
The statement by the French government came following a French media report which quoted former French President Francois Hollande as saying that the Indian government proposed Reliance Defence as the partner for Dassault Aviation in the Rs 58,000 crore Rafale deal and France did not have a choice.
"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," it said.
The French government said, "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 so as to fulfil their obligations in this regard." The Congress
Dassault Statement
Dassault stated that while the Rafale deal was a contract between the Indian and the French governments, it provided for a separate contract in which Dassault Aviation committed to making compensation investments (offsets) in India equivalent to 50 per cent of the value of the purchase.
"This offsets contract is delivered in compliance with the Defence Procurement Procedure (DPP) 2016 regulations. In this framework, and in 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," the company stated.
"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," it added.
The French aviation company also said that contracts were signed with companies other than Reliance as well, as part of the offsets contract under the Rafale deal.
‘Other partnerships have been signed with other companies such as BTSL, DEFSYS, Kinetic, Mahindra, Maini, SAMTEL,’ Other negotiations are ongoing with hundred-odd other potential partners,’ the firm divulged.
Opposition leaders
The opposition parties have also alleged that the Reliance Defence was formed just 12 days before the announcement of the Rafale deal by the prime minister on 10 April 2015. The Reliance group has rejected the charges.
Congress chief Rahul Gandhi led a blistering opposition attack on Prime Minister Narendra Modi on Friday over the Rafale deal, accusing him of betraying India and dishonouring its soldiers, after former French president Francois Hollande's reported remarks contradicting the Indian government's stand.
Leaders of the Congress, the Left and the Aam Aadmi Party among others lashed out at the government soon after Hollande's comments were reported.
Rahul Gandhi
Rahul Gandhi tweeted, "The PM personally negotiated & changed the Rafale deal behind closed doors. Thanks to Fran ois 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." The Congress chief has been repeatedly targeting the government over the fighter aircraft deal, alleging corruption and cronyism.
P Chidambaram
"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’ Defence Minister has been called out again! This time by then President of France, Mr Hollande," Congress leader P Chidambaram said.
Randeep Surjewala
Congress' chief spokesperson Randeep Surjewala alleged that Modi "hid behind the smokescreen of web of lies that he had weaved".
"Truth always prevails. Congress President Rahul Gandhi asked the Prime Minister in Parliament to look him into his eye and tell the truth. Prime Minister Narendra Modi did not dare to look straight. PM Modi looked away," he said.
Sitaram Yechury
"Truth is now out in the open for everyone to see and adjudge. It is now clear that chowkidar hi gunahgar hai (the watchman is the culprit)," Surjewala said The Communist Party of India (Marxist) general secretary Sitaram Yachury accused the government of lying and misleading people.
"This Rafale deal is a scam if there was one. The Modi govt has lied and misled Indians. The whole truth must come out now. Why was the Indian government batting for one corporate house with no experience in defence manufacture’" Yechury tweeted.
Arvind Kejriwal
In a swipe at Modi, AAP leader and Delhi Chief Minister Arvind Kejriwal asked the prime minister to come clean.
"The country wants to know the truth. Complete truth. Everyday Indian government's comments are turning out to to false. People have started believing that something bad has really happened. Why else the government will lie everyday," he tweeted.
Under India's offset policy, foreign defence entities are mandated to spend at least 30 per cent of the total contract value in India through procurement of components or setting up of research and development facilities.
Ten days after India sealed the government-to-government agreement on the Rafale deal, Reliance Defence and Dassault had announced a joint venture (JV) in the aerospace sector and a year later, the foundation stone of a manufacturing facility was laid in Mihan, Nagpur.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Emmanuel Macron")
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}