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Rafale deal: Accepting Reliance was imperative and obligatory, says French report

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Rafale deal: Accepting Reliance was imperative and obligatory, says French report

On the eve of Defence Minister Nirmala Sitharaman’s visit to France and a day after Supreme Court asked Centre for details of the decision making process behind Rafale deal, a fresh storm arose over Rafale deal.

French newsportal Mediapart said it has an internal document of Dassault Aviation that says that its joint venture with Anil Ambani’s Reliance group for discharging offsets in the 36-Rafale deal was a “condition”, “imperative and obligatory” for the Rafale deal with India.

Mediapart said it had obtained an internal document which shows that Deputy Chief Executive Officer of Dassault Aviation Loïk Segalen said to his staff on May 11, 2017, during a presentation of the joint venture Dassault Reliance Aerospace Ltd (DRAL) from Nagpur: “It was imperative and obligatory for Dassault Aviation, to accept this condition, in order to obtain the export contract for Rafale from India.”

The new allegations came on a day when Defence Minister Nirmala Sitharaman was headed to France where she will visit a Dassault factory where the 36 Rafale aircraft are being manufactured for India. Sitharaman will also meet her French counterpart, Florence Parly. Sources say Dassault is likely to push for more Rafale jets to be bought by India during the Defence Minister’s three-day visit.

Dassault issued a denial in which it admitted the role of Loik Segalan, the Dassault manager who made the statement.

The statement read: “Within the framework of the September 2016 Inter-Government Agreement between France and India, Dassault Aviation has sold 36 Rafale aircraft to India. In compliance with the Indian regulations (Defence Procurement Procedure) and as frequent with such a contract, Dassault Aviation has committed to offsets in India worth 50 per cent of the value of the purchase.”

“In order to deliver some of these offsets, Dassault Aviation has decided to create a joint venture. Dassault Aviation has freely chosen to make a partnership with India’s Reliance Group. This joint venture, Dassault Reliance Aerospace Ltd (DRAL), was created February 10, 2017. Other partnerships have been signed with other companies such as BTSL, DEFSYS, Kinetic, Mahindra, Maini, SAMTEL. Other negotiations are ongoing with a hundred-odd other potential partners.”

“In compliance with French regulations, Chief Operating Officer Loïk Segalen informed, May 11, 2017, the Central Works Council of the creation of the DRAL joint-venture in order to fulfil some of the offsets commitment,” it added.

The previous Congress-led UPA government had negotiated with Dassault for 126 Rafale jets under which 18 jets were to be sent in a fly-away condition and 108 were to be assembled in India by HAL. However, the UPA could not seal the deal.

The new deal, announced by Prime Minister Narendra Modi on April 10, 2015 during his visit to Paris, led to the cancellation of the 126 aircraft deal being negotiated by the previous government and became one for purchase of 36 aircraft. The deal was signed 16 months later on September 23, 2016 in Delhi between then Defence Minister Manohar Parrikar and his French counterpart.

In this deal, Anil Ambani’s firm became Dassault’s key offset partner. As part of the offset clause, Dassault has to ensure that business worth at least half the money — Rs.30,000 crore — is generated in India. The offset obligations of the deal are to be discharged from September 2019 to September 2023, as per the contract.

Dassault has maintained that “in accordance with the policy of Make in India, Dassault Aviation has decided to make a partnership with India’s Reliance Group” and that “it is Dassault Aviation’s choice, as CEO Eric Trappier had explained in an interview”.

Segalen’s remarks back what former French President Francois Hollande, who held office when the deal for 36 Rafale aircraft was signed between India and France, had told Mediapart: “It was the Indian government that proposed this service group (Reliance), and Dassault who negotiated with Ambani. We didn’t have a choice, we took the interlocutor who was given to us.”

Hollande was responding to The Indian Express report referred to by Mediapart that Ambani’s Reliance entertainment had co-produced a French film with his partner, Julie Gayet, when India and France were negotiating the Rafale deal. “That’s why, on the other hand, this group (Reliance) did not have to give me any thanks for anything. I couldn’t even imagine that there was any connection to a film by Julie Gayet,” Hollande had said.

Hollande’s statement led to a spate of allegation and counter allegations. The opposition accused the government of ignoring the state-run defence company Hindustan Aeronautics Limited (HAL) to benefit Anil Ambani. Both the government and the industrialist have rubbished the charge.

The government had said it played “no role” and that “unnecessary controversies” were being created. Late last month, the Defence Ministry invoked “issues of conflict of interest involving persons close to the former President (Hollande)”.

The government said, “had no role in the selection of Reliance Defence as the Offset partner” and that “as per Defence Offset Guidelines, the foreign Original Equipment Manufacturer is free to select any Indian company as its offset partner”.

Ambani’s Reliance Defence became part of the offset programme of the Rs 59,000-crore Rafale deal through DRAL in which it holds a 51% stake. Dassault Aviation holds 49% stake in DRAL. In October 2017, Dassault CEO Eric Trappier had announced an investment of 100 million euros in the DRAL factory planned at Nagpur, which was scheduled to start production in 2018.

This was after Trappier and Ambani laid the foundation stone for the Nagpur factory in the presence of then French Defence Minister Florence Parly; Roads and Highways Minister Nitin Gadkari; Maharashtra CM Devendra Fadnavis and Ambassador of France to India Alexandre Ziegler.

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PM Modi says need to equip youth with skills in emerging technologies like AI

He acknowledged the significant contribution of youth energy to India’s advancement and reaffirmed his government’s commitment to nurturing young talent and boosting their self-confidence.

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Prime Minister Narendra Modi on Thursday emphasised the importance of adapting to the rapidly evolving world, noting that emerging needs, expectations, and future directions underscore the necessity for a modern approach in equipping young people with skills in emerging technologies like artificial intelligence and machine learning.

He acknowledged the significant contribution of youth energy to India’s advancement and reaffirmed his government’s commitment to nurturing young talent and boosting their self-confidence.

In his remarks during the ‘Veer Baal Diwas’ celebrations, Modi stated, “This era has moved beyond machines to machine learning. AI is taking centre stage, and we can see its application replacing conventional software. It is essential to make our youth future ready to tackle these challenges.” The observance of ‘Veer Bal Diwas’ honors the courage and sacrifices of Guru Gobind Singh’s four sons, esteemed figures in Sikhism.

The Prime Minister outlined that the government’s policies are focused on youth, encompassing various sectors, including the startup ecosystem, space economy, sports and fitness, fintech, manufacturing, skill development, and internship programs.

He highlighted that the new National Education Policy is designed to modernize education, facilitating expansive learning opportunities.

Additionally, Modi announced the launch of the ‘Suposhit Gram Panchayat Abhiyan,’ aimed at fostering healthy competition among village panchayats to eliminate malnutrition, thus laying the groundwork for a developed India. He encouraged the youth to excel in their respective fields, whether in railways, semiconductors, travel, or astronomy.

The Prime Minister highlighted that youth power is at the forefront of driving revolutions across various fields, including startups, science, sports, and entrepreneurship. He emphasised that all government policies—whether related to the startup ecosystem, the future of the space economy, the sports and fitness sector, fintech and manufacturing industries, or skill development and internship programs—are designed with a youth-centric focus to benefit young people.

During the Veer Bal Diwas ceremony, Modi paid tribute to the “unparalleled” sacrifices of Guru Gobind Singh’s sons, the Sahibzadas, who chose “unwavering courage and faith over submission to the Mughal Empire’s oppression.” He remarked that the government established this day of remembrance to honor the bravery of the Sahibzadas, stating, “Their legacy continues to inspire.”

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Mahatma Gandhi’s legacy under threat from Modi government: Sonia Gandhi

Approximately 200 leaders, including CWC members, special invitees, party officials, and former chief ministers, convened for the Congress meeting in Belagavi.

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Congress Parliamentary Party (CPP) chief Sonia Gandhi on Thursday said Mahatma Gandhi’s legacy is under threat from those in power in New Delhi and the ideologies and institutions that have nurtured them. She urged the party workers to bolster their commitment to addressing these challenges with determination.

As the Congress Parliamentary Party Chairperson, Gandhi slammed the Narendra Modi government and the RSS, urging action against the forces she accused of fostering the toxic environment that contributed to Mahatma Gandhi’s assassination.

“It was a transformative moment in our nation’s history. Today, we recommit to honoring, safeguarding, and advancing the legacy of Mahatma Gandhi, who has always been and will remain our fundamental source of inspiration,” she stated.

“His influence shaped and guided the remarkable leaders of his time. However, his legacy now faces threats from those in power in New Delhi, along with the ideologies and institutions that support them,” she continued in her message.

“These organisations never stood for our freedom; they vehemently opposed Mahatma Gandhi and are responsible for creating a toxic environment that led to his assassination. Furthermore, they celebrate his assassins,” Gandhi asserted.

She highlighted that “Gandhian institutions across the nation are under assault” and expressed that it is fitting for this meeting to be named Nava Satyagraha Baithak. She called for a renewed determination to confront these forces with all available strength.

Additionally, she encouraged party workers to unite and tackle the challenges ahead with urgency and renewed enthusiasm.

Congress President Mallikarjun Kharge, also speaking at the meeting, accused the BJP of disrespecting freedom fighters, particularly B.R. Ambedkar. He alleged that Prime Minister Narendra Modi and his administration refuse to acknowledge the error made by Home Minister Amit Shah regarding his “extremely insulting” comments about Ambedkar.

In response, the BJP condemned the Congress’s gathering, labeling the Belagavi session as a “monumental mockery of the principles of Mahatma Gandhi.” Senior BJP leader C.R. Kesavan remarked that “Rahul Gandhi’s Congress stands in stark opposition to Mahatma Gandhi and his ideals.”

Approximately 200 leaders, including CWC members, special invitees, party officials, and former chief ministers, convened for the Congress meeting in Belagavi.

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China gives nod to build world’s largest dam on Brahmaputra close to Indian border

The investment in this dam could surpass one trillion yuan (approximately $137 billion), significantly overshadowing all other single infrastructure projects, including China’s own Three Gorges Dam, which is currently recognized as the largest in the world.

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China has given its nod to construct the world’s largest dam, termed the most significant infrastructure project globally, with an estimated cost of $137 billion, located on the Brahmaputra River in Tibet near the Indian border, raising alarms for neighboring countries, particularly India and Bangladesh.

The Chinese government announced its decision to develop a hydropower project in the lower reaches of the Yarlung Zangbo River, which is the Tibetan nomenclature for the Brahmaputra.

The dam will be sited at a substantial gorge in the Himalayan region where the Brahmaputra river makes a notable U-turn, flowing into Arunachal Pradesh before reaching Bangladesh.

The investment in this dam could surpass one trillion yuan (approximately $137 billion), significantly overshadowing all other single infrastructure projects, including China’s own Three Gorges Dam, which is currently recognized as the largest in the world.

China had previously operationalised the $1.5 billion Zam Hydropower Station, the largest in Tibet, back in 2015. This Brahmaputra dam project forms part of the 14th Five-Year Plan (2021-2025) and is aligned with broader National Economic and Social Development goals and Long-Range Objectives set out through 2035, as established by the Communist Party of China’s key policy-making body in 2020.

Concerns have been raised in India, as the dam would allow China not only to manage water flow but also potentially to release significant water volumes, which could inundate border areas during hostilities. In parallel, India is also pursuing the construction of a dam on the Brahmaputra in Arunachal Pradesh.

In 2006, India and China instituted the Expert Level Mechanism (ELM) to address various matters related to trans-border rivers, which involves China providing hydrological data regarding the Brahmaputra and the Sutlej rivers during the monsoon seasons.

Discussions on data sharing related to trans-border rivers were highlighted in recent talks between the Special Representatives for border issues in India and China, NSA Ajit Doval, and Chinese Foreign Minister Wang Yi, which took place on December 18.

The proposed Brahmaputra Dam presents substantial engineering hurdles, situated along a tectonic plate boundary known for seismic activity. The Tibetan Plateau, often referred to as the “roof of the world,” is susceptible to earthquakes because of its location over tectonic plates.

An official statement released on Wednesday attempted to alleviate fears concerning seismic risks, asserting that the hydropower project is designed to be safe and emphasizes ecological protection.

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