Sunday, October 25, 2020
Home News Reports Rahul Gandhi is wrong, HAL is part of the Rafale deal

Rahul Gandhi is wrong, HAL is part of the Rafale deal

On October 13, Rahul Gandhi thundered in front of the head offices of Hindustan Aeronautics Limited, “Rafale is your right. You have the experience to build the plane”, he told the assembled crowd, which included retired and current employees of HAL. Repeating his baseless allegations for the millionth time, he said that Modi has snatched a multi-million contract from HAL.

But is HAL really been deprived in the deal for Rafale fighter jet? We must remember that India is buying 36 jets in flyway condition from France, which means all the 36 planes will be fully made in France, and there is no question HAL or Reliance or any other company building it in India. Yes, HAL has experience of assembling fighter jet, they have assembled various planes like Su-30MKI, Mirage, Mig-21 etc. But in the current deal for 36 Rafale jets, there is no provision for assembling them India.

So what is Reliance doing? They are an offset partner. As per the Indian defence procurement policy, foreign vendors have to put back 50% of the deal value in India. This offset can be in the form of investment in India, purchase of any product or service from India, or transfer of technology to an Indian organisation.

To fulfil offset obligations, foreign companies have to form a joint venture with Indian companies, because as per current FDI policy, maximum FDI allowed in the defence sector is 49%. This means they have to find a joint venture partner who will bring the rest 51%. This means both the offset business and forming a joint venture is mandated by the government of India policy.

In the manufacturing of Rafale jet, four major French companies are involved, they are Dassault, Thales, Safran, and MBDA. Each of these four companies have offset obligations, and to fulfil them they have formed numerous joint ventures and in the process of forming alliance with more companies. The list of such JVs can be seen here and here.

Among the many companies who have got a share of the offset business, one is HAL.

Yes, contrary to what Rahul Gandhi is alleging, HAL has not been kept out of the Rafale deal. They are very much part of it.

In 2005, HAL and Snecma (now known as Safran) had formed a joint venture company Snecma HAL Aerospace Pvt. Ltd, to manufacture various parts for the French company in India. In 2015, they signed an MoU to set up a facility to manufacture several high-tech parts for the Dassault Rafale’s Snecma M88 engine. And now, Dassault has formed an alliance with this Snecma HAL as one of their offset partners. Snecma HAL will get some business as part of Dassault’s offset obligation.

It is time Rahul Gandhi should start respecting facts and stop making false allegations. HAL is a crucial part of India’s defence establishment and they should not be involved in any politics. They are already involved in dozens of projects and they should be allowed to concentrate on their job. Original tender for MMRCA was for 126 jets, India is buying only 36 now. Which means sooner or later, India will need to buy around 100 more jets for IAF alone. Requirements will arise for navy also once the aircraft carriers that are being built are completed. In those purchases, some of the planes will be definitely made in India, and for that HAL may be selected. But in the current deal, HAL can only be an offset partner and not a manufacturer of the plane. So, no injustice has been done to the company.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Meet Sachin Vaze, the ‘encounter specialist’ cop leading the investigation against Arnab Goswami who was once suspended for custodial murder

Sachin Vaze was suspended from the police force over the custodial death of a 27-year-old software engineer in 2003

Farooq Abdullah, Mehbooba Mufti, Sajjad Lone come together to form ‘Gupkar Alliance’, vow to restore articles 370, 35A and statehood in Jammu & Kashmir

The in the Gupkar alliance seeks restoration of Articles 370 and 35A and also the statehood for Jammu and Kashmir

PM Narendra Modi inaugurates three key projects in Gujarat, calls it a symbol of strength, devotion and health

PM Narendra Modi virtually inaugurated three development projects related to agriculture, tourism and health in Gujarat today

Alt News selectively cites coronavirus statistics to criticise PM Modi alleging he used selective data

Alt News published an article alleging that PM Modi selectively cited coronavirus numbers to give a rosy picture of country’s fight against the pandemic

Arvind Kejriwal remains non-committal on making coronavirus vaccine free in Delhi

The reluctance of Arvind Kejriwal to clearly state the policy of his government on coronavirus vaccine in Delhi is puzzling.

‘Encounter specialist’ cop facing murder charges and reinstated by Param Bir Singh had joined Shiv Sena

Sachin Vaze, Pradeep Sharma, who were both 'encounter specialist' cops facing murder charges, were close to Mumbai CP Param Bir Singh

Recently Popular

‘He supplies drugs and girls’: Estranged wife of Mahesh Bhatt’s nephew Luviena Lodh alleges harassment by nephew-uncle duo

Luviena Lodh said that Mahesh Bhatt is the don of the industry, and he controls everything that goes on in the film industry

Exclusive: Conversation that shows how Mumbai Police is trying to coerce witness into naming Republic TV in TRP scam

While Hansa Research report and the FIR filed named India Today in TRP scam, in less than 24 hours, Mumbai Police had seemingly made up its mind that Republic TV was the culprit

France: Charlie Hebdo cartoons projected on government building to express solidarity with deceased teacher who was beheaded by Islamic terrorist

Days after the barbaric beheading of teacher Samuel Paty on the streets of Paris by a terrorist for showing the cartoons of Prophet Mohammad to his students, support continues to pour in for the deceased teacher.

‘Jism ki garmi’: How Hindi film industry disregarded consent and normalised rape and molestation over the years

The Hindi film industry has, knowingly or unknowingly, convinced a generation of people that rape is normal when done in light of 'greater good'.

Lucknow: Jama Mazar caretaker ‘Kale Baba’ caught running sex racket, video goes viral

The caretaker has allegedly confessed to police that he was sexually exploiting women and engaging them in illicit activities in the name of curing infertility and other ailments.

Complaints filed against Eros Now and Arré for vulgar social media posts related to Navratri

Both Eros Now and Arre had published social media posts linking Navratri festival with sex and vulgarity
- Advertisement -

Dear Rahul Gandhi, time to go to Baran to fight for justice of those minor girls whose rape was denied by Rajasthan CM

Rajasthan Chief Minister Ashok Gehlot had denied the Baran rape case saying that the victims had gone with the culprits willingly

Meet Sachin Vaze, the ‘encounter specialist’ cop leading the investigation against Arnab Goswami who was once suspended for custodial murder

Sachin Vaze was suspended from the police force over the custodial death of a 27-year-old software engineer in 2003

Farooq Abdullah, Mehbooba Mufti, Sajjad Lone come together to form ‘Gupkar Alliance’, vow to restore articles 370, 35A and statehood in Jammu & Kashmir

The in the Gupkar alliance seeks restoration of Articles 370 and 35A and also the statehood for Jammu and Kashmir

PM Narendra Modi inaugurates three key projects in Gujarat, calls it a symbol of strength, devotion and health

PM Narendra Modi virtually inaugurated three development projects related to agriculture, tourism and health in Gujarat today

Times of India hides identity of Dilbar Qureshi who posed as a Hindu man and kidnapped a minor Hindu girl in Delhi Love Jihad...

The Times of India report merely says that a 13-year old girl was kidnapped by a 25-year old man, hiding his identity completely

Alt News selectively cites coronavirus statistics to criticise PM Modi alleging he used selective data

Alt News published an article alleging that PM Modi selectively cited coronavirus numbers to give a rosy picture of country’s fight against the pandemic

Arvind Kejriwal remains non-committal on making coronavirus vaccine free in Delhi

The reluctance of Arvind Kejriwal to clearly state the policy of his government on coronavirus vaccine in Delhi is puzzling.

Mumbai: Body of missing Coronavirus patient recovered after 14 days from the hospital bathroom

The TB+Coronavirus patient had gone missing om October 4, but his body was recovered 14 days later on 18th inside a toilet in the hospital

Wife of UP police DIG who is member of the SIT formed in relation to Hathras case dies by suicide

Pushpa Prakash reportedly killed herself by hanging. The reason of suicide is not yet known.

Finance ministry issues guidelines for interest waiver scheme during the lockdown period- Read details

The govt will pay the difference between simple and compound interest from March to August under compound interest waiver scheme

Connect with us

245,563FansLike
467,881FollowersFollow
19,200SubscribersSubscribe