Clear the air: on Rafale deal
The Hindu 23 Jan 2019
That troubling questions about the purchase of 36 Rafale fighter jets will persist despite a clean chit of sorts from the Supreme Court, was demonstrated compellingly last week following The Hindu’s detailed investigation into the deal. It showed that in comparison to the bid under the UPA there was an overall escalation in the price of each jet in the 2016 deal struck by the Modi government, because the price of 13 India Specific Enhancements (ISEs), essentially upgrades that were sought on the bare-bones aircraft, was spread over 36 jets as opposed to the original 126. Significantly, as The Hindu’s investigation revealed, three Defence Ministry officials in the seven-member Indian Negotiating Team objected to the €1.3 billion assigned to ISEs; it was eventually approved by a narrow 4-3 majority on the ground that ISEs are a non-recurring cost. But this raises an obvious and perplexing question: since they are a non-recurring cost, why did the government drop, or fail to secure, the follow-on provision, which would have given India the option to purchase more Rafales, and reduce the per-aircraft price by spreading the design and development costs involved in the upgrades? After all, the follow-on clause was a part of the deal under negotiation under the UPA government. The import of the question assumes an altogether different dimension given that the Air Force, with an old and depleting fleet, has required — and for some two decades now — far greater numbers of Medium Multi-Role Combat Aircraft (MMRCA) like the Rafale. Last year, the government issued a Request for Information for 110 fighters, of which about 15% will be acquired in a flyaway condition and the remainder manufactured under the strategic partnership route. With the same manufacturers back in the bidding fray, we are in a way back to where we were — in other words, to a place that casts doubts on the vigour of India’s long-term planning when it comes to defence preparedness.
Owing to a mix of investigation, statements and government leaks, much of the information about the pricing, the acquisition process and the ISEs are already in the public domain. It is nobody’s case that information that could impact the aircraft’s operational capability or jeopardise national security should be shared, but the government has been less than willing to come forward to address the issue of pricing. Instead it has been taking cover, unconvincingly, under the secrecy clause in the general security agreement signed between India and France in 2008. Given the fog of doubt over a number of issues, it is unclear why it doesn’t adopt a more accommodating posture by arranging private briefings for Opposition leaders and permitting a JPC to examine the deal. Without this, the general presumption will be that it has something to hide.
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