The Congress claimed that each aircraft would cost Rs 526.10 crore as per negotiations done by the UPA government, while the cost has now been escalated to Rs 1,570.80 crore.
Defence Minister Nirmala Sitharaman on Friday rejected the Opposition's allegations of bypassing norms and getting into a deal to purchase overpriced 36 Rafale fighter jets.
She said the "bickering" on the cost was shameful as the Narendra Modi government had to go in for an "emergency procurement" to strengthen the Indian Air Force.
Countering the Congress claims of crony capitalism to benefit a businessman and causing a huge loss to the exchequer, Sitharaman said that the UPA government could not take a decision on purchasing the fighter jets in its ten-year rule between 2004 and 2014.
Rafale became the lowest bidder in 2012 but there was no breakthrough to sign the deal.
The Congress claimed that each aircraft would cost Rs 526.10 crore as per negotiations done by the UPA government, while the cost has now been escalated to Rs 1,570.80 crore.
The party alleged that not only was the deal done on much higher rates than what was decided during the tender process but also interests of public sector undertaking Hindustan Aeronautics Limited (HAL) were ignored as Dassault Aviation manufacturing Rafale refused to transfer technology and got into a joint venture with Reliance Defence for defence manufacturing in India.
"The deal is undoubtedly far better than what they (UPA) would have paid per aircraft," Sitharaman said at a press briefing.
Flanked by Defence Secretary Sanjay Mitra on her left and Deputy Chief of the Indian Air Force Air Marshal Raghunath Nambiar on her right, the minister said, "Not a single procedure has been violated. The Cabinet Committee on Security's (CCS) consent was obtained and five rounds of negotiations including experts and people from the Air Force took place."
Sitharaman said that Prime Minister Modi was briefed of the "grim situation" in 2014 as the Air Force was nowhere near the strength envisaged in 2000.
Explaining the events leading to the signing of the deal in September 2016 to buy 126 Rafale jets, Sitharaman said the PM went to Paris in 2015, came back and followed the due process, and after almost a year and a half, in the presence of defence minsters of India and France, the agreement was signed in Delhi.
However, she did not clarify when the CCS gave a clearance to the deal. The CCS includes the Prime Minister and the Ministers of Home, Defence, External Affairs and Finance.
"A responsible opposition cannot come out without checking facts," she said.
The 36 jets are to come from France in a flyaway condition.
Reliance Defence and Dassault have entered into a joint venture but Sitharaman clarified that no offset contracts have been signed so far.
Significantly, French Minister Florence Parly visited Mihan near Nagpur last month where she participated in the foundation stone-laying ceremony of Dassault Reliance Aerospace Limited (DRAL) that is expected to carry out offset requirements as part of the Rafale deal where manufacturing of some parts will be done for the fighter jet.
According to the offset clause in the deal, 50 per cent of the total amount will be invested in India's defence needs.
Referring to the joint venture between two companies, the Defence Minister said that if two private firms come together, they don't need the Defence Ministry's approval.
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