Ahead of much-awaited Comptroller and Auditor General (CAG) report on Rafale deal, Ministry of Defence's submission regarding pricing before the auditor suggests the deal was better than what was being negotiated under UPA regime.
The ministry, in it submission, also reiterated what Defence Minister Nirmala Sitharaman had stated earlier: that the Modi govt was getting the Rafale fighter jets at a rate 9% cheaper than what the UPA dispensation had agreed upon.
Sources said as per the submission, it has been revealed that the inflation escalation clause under the UPA was fixed at 3.9% per year, while under the NDA, the same was capped at 1.22%.
The submission under section commercial advantage due to changeover from firm and fixed cost as in 126 Medium Multi-Role Combat Aircraft (MMRCA) to Indices based cost as in 36 Rafale stated: "126 MMRCA price was firm and fixed which was computed at annual escalation rate of 3.9%. As average escalation rate in France during 2012-2015 was only around 1.22%, a decision was taken to finalise the 36 Rafale procurement at 2015 price levels with Indices based escalation with a cap of 3.5%."
CAG report is expected to be tabled on Wednesday, the last day of the ongoing session. The Congress-led opposition has been attacking government over the deal, though the latter has clarified numerous times about the fairness of deal.
On Tuesday, the Congress changed its stand vis-a-vis presentation of CAG report. It is now demanding that CAG Rajiv Mehrishi recuse himself from auditing and submitting a report on the Rafale deal due to a "conflict of interest."
The party said Mehrishi, as the then Union finance secretary, was part of Modi government's internal negotiations. Ghulam Nabi Azad, leader of the opposition in the Rajya Sabha, and former Union law minister Kapil Sibal placed this demand before Mehrishi in an official memorandum.
Earlier, the Congress wanted the CAG to present his report, and fast.
The previous UPA government started negotiating in 2012 with French firm Dassault Aviation to buy 126 Medium Multi-Role Combat Aircraft (MMRCA). The plan was for Dassault Aviation to supply 18 Rafale jets in fly-away condition while 108 aircraft were to be manufactured in India by the company along with HAL. However, the deal could not be sealed.
It was PM Modi, during his visit to Paris in April 2015, announced that India would be buying 36 Rafale fighters from France in an inter-government deal. After five rounds of negotiations, the deal was finally signed by the two defence ministers in Delhi in September 2016 for 36 fighter jets for Rs 58,000 crore.
Report May Be Tabled Today
- As per MoD submission, inflation escalation clause under UPA was fixed at 3.9% per year, while under NDA, same was capped at 1.22%
- Congress, in a U-turn, is now demanding that CAG Rajiv Mehrishi recuse himself from submitting the report due to a "conflict of interest"
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