Executive Summery: Purchase price per Rafale Fighter Aircraft:
India (Under BJP) Rafale = .216 Billion Euro for fully built Rafales off the shelf (Total 36)
Qatar =0.3 Billion Euro Rafale with MBDA Missile and training to 36 pilot and 100 technician (Total 24)
Egypt = 0.2166 Billion Euro Rafale (total 24)
India (Under UPA) = 0.128 Billion Euro With technology transfer. (Total 126 out of which 18 off the shelf and 108 being assembled in India by HAL in India.
Detail about Rafale Deal :
One fine day in September 2016, India signed an inter-governmental agreement with France, known as “Rafale deal”, in which India bought 36 off-the-shelf Dassault Rafale twin-engine fighters for a price estimated to be Rs. 58,000 crore or 7.8 billion Euros (9.6 US Dollars).
The Rafale was chosen in 2012 over rival offers from the United States, Europe and Russia. The step was needed to upgrade India’s ageing fleet. The original plan was that India would buy 18 off-the-shelf jets from France’s Dassault Aviation, with 108 others being assembled in India by the state-run Hindustan Aeronautics Limited or HAL in Bengaluru.
The Modi-led BJP government, however, rowed back from the commitment of the last UPA government to buy 126 Rafales, saying the twin-engined planes would be too expensive and the deal fell through after nearly decade-long negotiations between India and France. There were a lot of hiccups over costs of the aircraft. However, faced with the dipping number of fighters and a pressing need to upgrade the Indian Air Force, Prime Minister Narendra Modi intervened and decided to buy 36 “ready-to-fly” fighters instead of trying to acquire technology from Dassault and make it in India.
The champion of make in India himself overruled the possibility of making aircraft in India which would have created lots of employment and technical development. A big loss to HAL-an Indian state-owned aerospace and defence company based in Bangalore, Karnataka
The Indian Air Force requires 42-44 Squadrons of fighters to deal with Western and Northern borders. It has only about 34 Squadrons of fighters. And, it will have to retire about 14 squadrons of Mi-G-21 and MiG-27 fighters by 2022. There are 16-18 planes in one squadron.
We need more than 160 fighter plane by 2022 and our government is purchasing just 36!
Earlier, speaking to Press Trust of India, Defense Minister Manohar Parrikar said that India is unlikely to increase the number of Rafale fighters. The defence minister said that French-made jets were “way too expensive.”
See the difference here: 126 Rafales in 20 Billion USD. Now India is buying 36 Rafale in approx. 9.6 Billion USD. So the UPA was buying one Rafale fighter plane at 158.7 million USD, whereas BJP is buying at 266.6 million USD. Around Hundred million more expensive each aircraft. Which means BJP Government is paying 3.6 Billion USD more for the same Rafale twin-engine fighters plane for 36 plane. If I convert it into rupees it will be 231 Billion rupees Scam.
Government has no explanation for this huge price increase in purchase of same Fighter plane within a short span of time. Here is another angle. Qatar Purchased Same Fighter planes from France.
France and Qatar signed a 6.3 billion euro ($7.02 billion) deal for the sale of 24 Rafale fighter jets. Read full story below:
So, the per plane cost which Qatar is paying is 292.5 million USD. But Qatar make a package deal which includes MBDA missiles, and the training of 36 Qatari pilots and 100 technicians by the French military.
So in (7.02 – (266.6 X 24) ) = 7.02- 6.4 = 620 million. In 620 million USD they purchased not only MBDA missiles but also training for 36 pilot and 100 technicians.
If we know the price of MBDA missiles we can figure out whether India or Qatar close the better deal.
French Defence Minister Jean-Yves Le Drian sign a €5.2 billion (6.24 Billion USD) contract for the sale of 24 Rafale fighter jets to Egypt, a move that will finalize the first foreign order of the French-built warplanes. Purchase price of Egypt is same as that of Indian purchase price of Rafale. But earlier under UPA govt. India reached to much better deal. But as always our PM has a habit of quick decision making (in favor of Big Business man) without discussing with experts and opposition.
The saga of Mr. Modi (Prime Minister of India) love with Big businesses like Reliance
Now, as you might understand the story, here is the love story of Reliance and PM which is going on from long time even before he became PM of India.
When Reliance launched JIO network, our PM became brand ambassador of Reliance and advertise for it. There are many more such incidents when Mr. Modi openly favors Reliance. But this one is not only a dent on economy but also on our border security. Let me explain how Mr. Modi helped Mr. Ambani s/o Mr. Dhirubhai Ambani indirectly in a big way.
Go to Reliance website: http://www.relianceadagroup.com/ada/index.html
You will find below news:
Dassault – Reliance Aerospace Manufacturing Facility In Mihan, Nagpur Inaugurated.
Below is the excript of press release during inauguration in Oct.27, 2017:
The Dassault-Reliance manufacturing facility Dhirubhai Ambani Aerospace Park is located in the Mihan SEZ adjoining Nagpur International Airport. Under Joint Venture company, DRAL (51% Reliance Aerostructure and 49% Dassault Aviation) the facility will manufacture several components of the offset obligation connected to the purchase of 36 Rafale Fighters from France, signed between the two Governments in September 2016. DRAL will manufacture components for the Legacy Falcon 2000 Series of Civil Jets manufactured by Dassault Aviation and thus will become part of its Global Supply Chain. These first steps are expected to achieve in the coming years, the possible setting up of final assembly of Rafale and Falcon Aircraft.
If NDA government had materialized the previously negotiated deal of 126 rafale fighters, the assembly of 108 Rafale Fighter and technology will go to Hindustan aeronautics (HAL)-a State owned company. Country would saved few billion rupees but Reliance will not be benefited with this deal. IAF still need more than 160 aircraft. Reliance is setting assembly line for Rafale Fighter plane with partnership of Dassault and hence will be the strongest contender to supply aircraft to IAF under make in India initiative of PM Modi.
Now you know how politicians cheat ordinary citizens and pretend as the biggest patriot. Strategy of Mr. Modi is clear. Help big businessman when you are in Government, and take there help during elections. Buy media, buy opposition, buy exit poll, buy EVM, buy criminals, buy Judges and buy voters. Buy everything which money can buy and win election.
There can be much bigger game going on underground which need expert investigation. But undoubtedly Rafale deal is a very big scandal. If opposition will take it seriously and strongly, Mr. Rahul Gandhi can prove his caliber to be next PM.