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Rafale deal: Congress launches fresh attack, alleges crony capitalism to favour Reliance

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Rafale deal

The Congress on Friday came out with a fresh set of papers accusing the Modi government of deceiving the country and saying that Defence Minister Nirmala Sitharaman “misled” the nation on the Rafale fighter aircraft deal.

The Congress focused on award of offset contract to Reliance Defence Ltd and alleged that something was amiss in grant of the contract.

Although the offset contract given to the Dassault Reliance Aerospace Limited – a joint venture between RDL and Dassault – is worth Rs 30,000 crore, the Congress released RIL’s papers which claimed that “a consequent Lifecycle Cost Contract” of Rs 1 lakh crore was also awarded to it.

Congress president Rahul Gandhi tweeted on Friday evening, “Dear Trolls, I apologise for my earlier tweet in which I stated Mr 56’s friend’s JV, received 4 Billion US$’s of “offset” contracts. I forgot to add the 16 Billion US$ RAFALE “lifecycle” contract. 20 BILLION US$, is the actual benefit. So Sorry!! #130000CroreRafaleScam”

AICC communication department head Randeep Surjewala said, “What is surprising is that one of the biggest defence offset contracts went to a company, Reliance Defence Ltd Reliance Defence was incorporated on March 28, 2015, just 12 days before the announcement of purchase of 36 Rafale aircrafts by PM in France on 10th April, 2015. The company Reliance Defence Ltd. did not have the license to manufacture fighter aircrafts at that time.”

Surjewala placed records of the ministry of corporate affairs, RIL’s press releases and company records to make his point that the Modi government had gifted the Anil Ambani-owned company a huge defence contract despite the fact that it neither had any industry experience nor any required assets, said a report in The Wire.

He highlighted a separate contract around the same time of the Rafale deal in which RDL’s sister company, Reliance Aerostructure Ltd benefitted. “Another subsidiary of RIL, Reliance Aerostructure Ltd (RAL), was given the license to manufacture fighter aircraft in 2016 around the same time when RDL got the offset contract in the Rafale deal.”

Surjewala claimed that RAL, which was “given the industrial licence to manufacture fighter aircraft” on February 22, 2016, did not own any land or building when it applied for the licence, reported The Indian Express (IE).

“In its licence application for manufacturing fighter aircraft, Reliance Aerostructure Ltd has given its address and location as ‘Survey No. 589, Taluka Jafrabad, Village Lunsapur, District Amreli, Gujarat’. At that time, these premises were not owned by Reliance Aerostructure. The address belonged to Pipavav Defence and Offshore Engineering Co Ltd,” the Congress leader was quoted by IE as saying.

Surjewala said 2015-16 annual report of the Reliance Group itself says that “acquisition of Pipavav Defence and Offshore Engineering Co. was successfully completed in January 2016.”

“Even on the date of license i.e 22.02.2016, Reliance Aerostructure Ltd. did not own the land or building at the aforesaid address. It was Reliance Defence Ltd. that acquired the company only on 18.01.2016 and name was then changed to Reliance Defence and Engineering Limited,” Surjewala was quoted as saying by The Wire.

He cited the company’s annual report 2015-16, page number 5 to substantiate his allegation. Similarly, he said even RAL was allotted 104 acres in Mihan SEZ, Nagpur, Maharashtra on 28 August 2015 for around Rs 63 crore, which was paid only in July, 2017. “So when the RAL was awarded the license to manufacture fighter aircrafts, it technically had no assets of its own. Is the Modi government serious about our country’s security?”

Surjewala also alleged that there were discrepancies in the Defence Ministry’s statement and the annual report of Dassault Aviation. The defence ministry’s statement issued on February 7, 2018 claimed “no Indian offset partner for the 2016 deal for 36 Rafale aircraft has been selected by the vendor [DA]”

But, the 2016 annual report of Dassault Aviation clearly stated Anil Ambani-led Reliance Group will “manage its offsets provided for in the country by the Make in India initiative”.

The Congress further alleged that on February 16, 2017, a press release from Reliance Defence Ltd., the joint venture partner, put the value of the deal at €7.87 billion, or approximately Rs. 60,000 crore, despite the Modi government claiming it cannot disclose it owing to a secrecy clause.

He also quoted a “investor presentation” slide of Reliance Infrastructure which talks about the joint-venture with Dassault Aviation. It talks about the offset contract worth Rs 30,000 crore, and that “life cycle opportunity (is) estimated at Rs 1 lakh crore over 50 years”.

Targeting defence minister Nirmala Sitharaman, Surjewala said that the ministry of defence had issued a press release on February, 7, 2018, which said, “…no Indian Offset Partner for the 2016 deal for 36 Rafale Aircrafts has been so far selected by the vendor (Dassault Aviation) because as per the applicable guidelines, Dassault Aviation is free to select the Indian Offset Partners and provide their details at the time of seeking offset credits, or one year prior to discharge of offset obligation”.

However, he said that RIL had issued a press release a year earlier on February 16, 2017, to announce that it had secured the offset contract in the Rafale deal. “Even Dassault Aviation in its Annual Report 2016-17 has claimed that ‘offset contract’ is being executed by Reliance.” Surjewala said.

Surjewala asked, “The simple question is, who is lying: the Defence Minister or Reliance/Dassault Aviation?”

He further said that if Dassault was free to choose its offset partner, as the defence ministry claims, it would be a clear violation of guidelines in such matters.

He said that the Defence Offset Contract Guidelines issued by the Defence Offset Management Wing (DOMW) of the Defence Ministry stipulates that all offset proposals will be approved by Defence Minister and approved by the Acquisition Manager. The guidelines, he said, also says the vender will submit six-monthly reports and that an officer of DOMW may conduct an audit to verify the actual status of implementation.

“The defence offset guideline warrant and mandate that every offset contract has to be approved by the Defence Minister. Did she approve it? If she did not approve it, how did she permit Dassault Aviation to handover the contract to a private company superseding a Government company? It only shows that the national interest was being compromised by the Prime Minister and Defence Minister of India,” he said.

The Congress alleged that the Modi government cancelled the UPA government’s deal that mandated government-owned Hindustan Aeronautics Ltd. only to suit a private company.

“The culture of crony capitalism is the DNA of the Modi government. It is truer than ever in case of the Rs. 60,145 crore Rafale deal …. Does the Prime Minister represent the interest of private companies and private industrial houses or is his duty and obligation to protect an existing signed contract between an experienced government company,” asked Surjewala.

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Rahul Gandhi says air pollution in North India a national emergency, tourism declining, global reputation crumbling

“We need a collective national response, not political blame games,” the Congress leader said on his X handle.

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Leader of Opposition in the Lok Sabha Rahul Gandhi on Friday said the air pollution in North India is a national emergency that needs a collective national response and not a political blame game. The Congress leader added that due to air pollution tourism is declining and “our global reputation is crumbling”.

It is a public health crisis that is stealing children’s future and suffocating the elderly, Gandhi said, adding an environmental and economic disaster that is ruining countless lives.

“As Parliament meets in a few days, MPs will all be reminded of the crisis by our irritated eyes and sore throats. It is our responsibility to come together and discuss how India can end this crisis once and for all,” the Leader of the Opposition in Lok Sabha said.

The former Congress chief said the poorest “among us suffer the most”, unable to escape the toxic air surrounding them. Families are gasping for clean air, children are falling sick, and millions of lives are being cut short, he added.

The Rae Bareli MP noted that the pollution cloud covers hundreds of kilometres. He said cleaning it up will require major changes and decisive action from governments, companies, experts, and citizens.

“We need a collective national response, not political blame games,” the Congress leader said on his X handle.

Gandhi also shared a video on a social media platform where he discussed the capital’s air pollution with environmentalist expert Vimalendu Jha. In the video, the Congress leader said he has been facing eye-burning and breathing issues and how the last week in Delhi has been terrible.

He said, “I tell my mother to leave town this month.” Jha explains to Gandhi that the sources of air pollution in Delhi are episodic and perennial. Episodic sources are firecrackers and stubble burning, which affect the month of November. “Vehicular contributes 50 per cent of Delhi’s pollution and construction-related roadside dust is another 30 per cent,” Jha said.

The Air Quality Index in Delhi has been severe since November 16, making it five consecutive days till Wednesday. On November 15, the average AQI was 396 (very poor).

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Indian Navy submarine collides with fishing boat near Goa coast, 2 fishermen missing

A spokesperson from the Navy told the media that eleven crew have been rescued so far.

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Indian Navy submarine collides with fishing boat near Goa coast, 2 fishermen missing

Indian Navy officials on Friday said that an Indian fishing vessel with a crew of 13 collided with an Indian Naval submarine near the Goa coast. 

Following the incident, a massive search and rescue operation has been launched by the Indian Navy, which has deployed six ships and aircraft. Reportedly, while 11 crew have been rescued, two are still missing.

The Ministry of Defence issued a statement and said that the vessel, Marthoma, collided with a Scorpene-class submarine about 70 nautical miles off the Goa coast. It added that search and rescue efforts for the remaining two are underway and are being coordinated with Maritime Rescue Coordination Centre Mumbai (MRCC). It further mentioned that additional assets including from the Coast Guard have been diverted to the area to augment the efforts.

The statement said that the cause of the incident is being investigated. Notably, Scorpene-class submarines are a major part of India’s naval power in the Indian Ocean as they can undertake multifarious types of missions, including anti-surface warfare, anti-submarine warfare, intelligence gathering, mine laying, and area surveillance.

Reports said that the state-of-the-art technology utilised for the construction of the Scorpene-class submarines has ensured superior stealth features such as advanced acoustic silencing techniques, low radiated noise levels, hydro-dynamically optimized shape and the ability to launch a crippling attack on the enemy using precision-guided weapons. Furthermore, the attack can be launched with both torpedoes and tube-launched anti-ship missiles, whilst underwater or on the surface.

Meanwhile, the Indian Navy in its statement said that 13 crew members were aboard the fishing vessel at the time of the collision. It added that while 11 crew have been rescued so far, two fishermen are still reported missing.

A spokesperson from the Navy told the media that eleven crew have been rescued so far. He stated that search and rescue efforts for the remaining two crew members of Marthoma are in progress and are being coordinated with the Maritime Rescue Coordination Centre (MRCC), Mumbai. Additional assets including from the Coast Guard have been diverted to the area to augment the efforts, he continued.

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10 Naxalites killed in encounter in Chhattisgarh’s Sukma

The District Reserve Guard (DRG) and the Central Reserve Police Force (CRPF) continue their search operation in the area.

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Ten Naxalites were killed in an encounter with security forces in the Sukma district of Chhattisgarh on Friday.

The confrontation started in the morning within a forest area under the jurisdiction of the Bhejji police station, where a joint operation was being conducted by security personnel as part of an anti-Naxalite initiative, according to Inspector General of Police (Bastar Range) Sundarraj P. 

This operation was initiated following intelligence regarding the presence of Maoists connected to the Konta and Kistaram area committees, situated in the forested regions around Korajguda, Dantespuram, Nagaram, and Bhandarpadar villages.

So far, the bodies of ten Naxalites have been recovered at the scene. Additionally, a significant cache of weapons was seized, including an INSAS rifle, an AK-47, and a Self Loading Rifle (SLR). 

The District Reserve Guard (DRG) and the Central Reserve Police Force (CRPF) continue their search operation in the area. This incident contributes to the year-to-date total of 207 Naxalite fatalities recorded in various clashes across the Bastar region of Chhattisgarh, comprising seven districts. 

On Wednesday, Chhattisgarh Chief Minister Vishnu Deo Sai met with Union Home Minister Amit Shah in the national capital, North Block. Their discussion focused on developmental progress in Naxal-affected areas of Chhattisgarh and efforts aimed at enhancing peace and stability in these regions. 

The Chief Minister emphasised that both the state government and security forces are diligently working to eradicate Naxal influence in Chhattisgarh, aligning with the Union Home Minister’s commitment to eliminate Naxalism by 2026.

“I met with Union Home Minister Amit Shah and updated him about the Naxal activities in Chhattisgarh. Over the past 11 months, close to 200 Naxals have been neutralized, and approximately 600-700 have surrendered. We are making significant strides towards the goal set by the Prime Minister and Home Minister to achieve a Naxal-free India by March 2026,” CM Sai told reporters following the meeting.

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