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Rafale deal: CAG report along expected lines on price, but raises other questions

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7 years ago

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Rafale deal

[vc_row][vc_column][vc_column_text]The report of the Comptroller and Auditor General (CAG) on Rafale deal tabled on the last day of the Budget Session in the Parliament today (Wednesday Feb 13), while contradicting Modi government’s claim of the reworked contract price being 9% lower than the previous deal negotiated by the UPA government, said it was 2.8% cheaper.

The audit does not go into the unanswered question of what was the need for cancelling the old deal envisaging transfer of technology and working out a new deal. If the UPA government had been slow in finalising the deal, as Modi government alleges, it could have speeded up the negotiations and sealed it in a matter of months instead of taking another over year-and-a-half after Prime Minister Narendra Modi’s surprise announcement in Paris.

There is also a question about the claim of faster delivery of the fighter aircraft in the renegotiated deal. A report in The Times of India (TOI) said the CAG report says that in the 2007 offer, 18 aircraft were to be delivered by 50th month of signing the contract. The next 18 were to be licensed produced in HAL and to be delivered from 49 to 72 months of the contract signing.

However, in the 2016 contract, the first 18 aircraft would be delivered between 36 to 53 months after signing of IGA and the remaining 18 to be delivered by 67 months, the CAG says, according to the TOI report.

The first Rafale jet is reportedly expected to arrive only later this year – by September 2019 and the rest of the first batch by 2022. If the negotiation of the previous deal, that was nearly complete, had been expedited and completed in 2015 – when the fresh process was started – the first  batch of 18 Rafale aircraft would have arrived by next year.

Even without these, the report, “Capital Acquisition in Indian Air Force”, tabled in the Rajya Sabha by Union Minister of State for finance, Pon Radhakrishnan, is a mixed bag from which both the Modi government as well as the Opposition, particularly the Congress party, can choose points to suit their respective narratives on the Rafale deal.

The CAG report, while predictably redacting the controversial details of the final purchase price for the 36 Rafale fighter jets that the Modi government negotiated with the French government and Dassault Aviation in 2016, says that the government did save on the renegotiated deal: it was 2.8% cheaper than the 2007 deal.

It is pertinent to note here that the 2007 negotiations were being carried out for purchase of 126 Rafale jets, also involving transfer of technology to India’s Hindustan Aeronautics Limited (HAL). The deal negotiated by the Modi government in 2016 was for only 36 jets with no transfer of technology involved.

The CAG report also says that officials of the Indian Air Force had, indeed, objected to certain proposed enhancements to the jet, that were sought by the Indian government 2016 from Dassault Aviation, as unnecessary. This was from those who have to fly the fighter and go to battle.

The report states that at least four “unnecessary India specific enhancements” were made to the Rafale jet as part of the deal though senior officials from the Indian Air Force had categorically informed the Ministry of Defence (MoD) that these were not needed. The MoD ministry, the report states, overruled the view of experts from the Indian Air Force.

Aspects of the deal that are more expensive include engineering support package and performance-based logistics.

The Modi government can take heart from the report also saying that India managed to save 17.08 percent money for the India Specific Enhancements in the 36 Rafale aircraft contract as compared to the 126 aircraft deal proposed by the UPA regime. The cost of the basic aircraft is the same in both cases.

The contract for Rafale consisted of six different packages with a total of 14 items. The contracted price of seven items was higher than the aligned price, the price at which the contract should have been signed.

Three items, including basic aircraft, were procured at the same price. Four items were purchased at lower than the aligned price.

The auditor also endorses claims made in a recent report published by The Hindu newspaper earlier this week which the Opposition has since used to slam the Modi government for a “sell out” to Dassault Aviation. The report in The Hindu had said that the deal renegotiated by the Modi regime had excluded sovereign guarantee clauses for Dassault Aviation, thereby ensuring that the French defence giant gets undue benefits in exchange.

CAG said in the previous offer of 2007, Dassault Aviation had provided performance and financial guarantees which was about 25 per cent of the total value of the contract. The vendor had embedded the cost in its bid price. But in the 2016 contract there are no such guarantees or warranty. This led to saving for Dassault Aviation which was not passed on to India.

The CAG, however, does not factor this aspect in its estimate that says the NDA-II’s deal was 2.86% cheaper. If these costs were considered – 25 per cent of the total value of the contract – the Modi government’s deal would be more expensive than the UPA’s.

Further, the auditor suggests that a Defence Ministry team in March 2015 had recommended scrapping of the 126 jet deal saying that Dassault Aviation was not the lowest bidder and EADS (European Aeronautic Defence & Space Company) was not fully compliant with the tender requirements. This has been among the major claims of the Opposition while attacking the Modi government on the Rafale deal.

The report has examined 11 defence deals (five from the UPA era and six from the NDA era) which were signed between 2012 and 2017. Prices have been redacted only for the part of the report that deals with the Rafale purchase agreements.

The Congress and other opposition parties have dismissed the report as biased because auditor Rajiv Mehrishi was Finance Secretary when the deal for 36 Rafale fighter jets was inked in 2016. The Congress alleges that Mehrishi was “complicit in the irregularities” in the Rafale deal and alleged that “the bungling was happening at the highest level with his direct or indirect complicity and consent”.

Union minister Arun Jaitley lashed out at the Opposition: “The lies of the Mahajhootbandhan stand exposed by the CAG report. It cannot be that the Supreme Court is wrong, the CAG is wrong and only the dynast is right,” he said, taking a swipe at Congress president Rahul Gandhi.

The CAG report came even as a report in The Hindu newspaper on Wednesday said at least three senior Defence Ministry officials among the seven-member Indian Negotiating Team were of the view that the final price offered by the French Government cannot be considered as ‘better terms’ compared to the deal under the UPA.[/vc_column_text][/vc_column][/vc_row]

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PM Modi’s Indonesia visit to boost defence, digital and strategic partnership

Prime Minister Narendra Modi’s Indonesia visit is expected to strengthen bilateral ties through new initiatives in defence, digital infrastructure, maritime security, trade and critical minerals.

Published

1 hour ago

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July 6, 2026

By

PM Narendra Modi

Prime Minister Narendra Modi’s upcoming visit to Indonesia is expected to give fresh momentum to the growing strategic partnership between the two countries, with discussions likely to cover defence cooperation, maritime security, digital connectivity, trade, critical minerals and several other sectors.

India’s Ambassador to Indonesia, Sandeep Chakravorty, said the relationship between New Delhi and Jakarta has entered a stronger phase following Indonesian President Prabowo Subianto’s visit to India as the Chief Guest for the Republic Day celebrations last year. He said the Prime Minister’s visit is expected to further strengthen this trajectory through a series of new understandings and agreements.

Defence and maritime cooperation likely to receive major push

According to the ambassador, defence and maritime security will remain key pillars of the discussions during the visit.

He highlighted Indonesia’s strategic location along the Malacca Strait, describing secure sea lanes as vital for both countries and the wider Indo-Pacific region. He stressed that uninterrupted maritime connectivity remains essential for global trade and regional stability.

Without revealing specific details, Chakravorty indicated that the visit could produce significant outcomes in defence cooperation, saying several important announcements are expected.

‘BrahMos Plus’ hints at broader defence partnership

The ambassador also suggested that defence ties between India and Indonesia are moving beyond discussions centred on the BrahMos supersonic cruise missile.

Responding to a question about future cooperation, he remarked that the next phase would be “BrahMos Plus,” while refraining from providing further details.

He said future collaboration is expected to focus on defence manufacturing, technology partnerships, training and capacity building. India, he noted, has emerged as an important exporter of defence equipment and could support Indonesia’s efforts to strengthen its domestic defence manufacturing capabilities.

Military cooperation is also expanding, with India set to participate with troops for the first time in the multinational Garuda Shield military exercise after previously attending as an observer.

Digital connectivity and UPI integration gain momentum

Digital cooperation is expected to be another major highlight of the visit.

The ambassador said Indonesia is preparing to launch its Open Network for Digital Commerce (ONDC)-inspired platform during Prime Minister Modi’s visit, making it the fastest international adopter of India’s digital public infrastructure model.

The initiative is expected to support nearly 65 million micro, small and medium enterprises (MSMEs) in Indonesia by creating a more open digital commerce ecosystem.

Chakravorty also said discussions on integrating India’s Unified Payments Interface (UPI) with Indonesia’s payment systems have reached an advanced stage.

While technical integration remains complex due to Indonesia’s multiple payment-switch networks, he expressed confidence that progress would continue and the Prime Minister’s visit could accelerate the process.

Critical minerals and investment to feature prominently

Critical minerals are also expected to be a major area of cooperation as both countries look to strengthen supply chains for clean energy technologies and electric vehicle manufacturing.

Indonesia possesses significant reserves of nickel and other strategic minerals, while India is seeking reliable supplies to support its manufacturing ambitions.

The ambassador said India plans to invest in processing critical minerals within Indonesia rather than importing only raw materials. He added that such investments would support industrial development in both countries while contributing to India’s self-reliance goals.

Cultural ties to be highlighted

Apart from strategic and economic cooperation, the visit is also expected to showcase the longstanding cultural relationship between India and Indonesia.

Both countries will launch a 15-month programme commemorating Rabindranath Tagore’s 1927 visit to Indonesia, recognising his influence on the country’s educational and cultural landscape.

Prime Minister Modi is also expected to visit Yogyakarta, a city known for its historic temples, reflecting the deep civilisational links shared by the two nations.

With cooperation expanding across defence, digital infrastructure, trade and critical minerals, the visit is expected to mark another important step in strengthening the India-Indonesia strategic partnership and advancing cooperation in the Indo-Pacific region.

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Ram Mandir Trust accepts Champat Rai’s resignation amid donation theft row

The Shri Ram Janmabhoomi Teerth Kshetra Trust has accepted Champat Rai’s resignation as General Secretary following the donation theft controversy, with Bajrang Bagra emerging as a leading contender for the post.

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1 hour ago

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July 6, 2026

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Champat Rai

The Shri Ram Janmabhoomi Teerth Kshetra Trust has accepted the resignation of its General Secretary, Champat Rai, following the controversy surrounding the alleged theft of cash donations at the Ram Temple in Ayodhya.

According to sources, Bajrang Bagra has emerged as one of the leading contenders for the post. Bagra currently serves as the International General Secretary of the Vishwa Hindu Parishad (VHP). A chartered accountant by profession and a former head of PSU NALCO, he is considered to have the administrative and financial expertise required as the Trust moves into its next phase.

Sources indicated that the Trust is looking to appoint someone with strong experience in governance, finance and institutional administration to strengthen its functioning.

Although Champat Rai has stepped down as General Secretary, sources said he is expected to continue as a trustee unless he decides otherwise.

Decision on successor may come after VHP executive meeting

The appointment of the next General Secretary is unlikely to be announced immediately. The VHP’s biannual national executive meeting is scheduled to take place in Delhi on July 19 and 20, where several organisational decisions, including transfers and appointments, are expected to be discussed.

Champat Rai and trustee Anil Mishra had submitted their resignations after Uttar Pradesh Chief Minister Yogi Adityanath reportedly took a firm stand on the alleged donation theft. Their resignations came after the Special Investigating Team (SIT) submitted its preliminary findings into the case.

Donation theft investigation

According to the preliminary investigation, temple staff responsible for counting cash donations allegedly siphoned off money despite CCTV cameras being installed at the counting centre. The report stated that the footage was not monitored regularly, allowing the alleged theft to continue. Reports suggest that around Rs 7 crore to Rs 7.5 crore may be missing.

So far, eight people have been arrested in connection with the case. Among them is Ram Shankar Yadav, also known as Tinnu Yadav, who worked as Champat Rai’s driver.

Sources said Champat Rai has told his close associates that Tinnu Yadav played the central role in the alleged fraud and misused the trust placed in him. According to the sources, Rai also claimed that when Yadav feared he would be caught, he leaked information to a Samajwadi Party leader.

The other accused arrested in the case are Avinash Shukla, Anukalp Mishra, Lav Kush Mishra, Manish Kumar Yadav, Karunesh Pandey, Ramashankar Mishra and Subhash Srivastava.

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WhatsApp gets more time to respond on username feature, rollout in India put on hold

WhatsApp has been granted more time to respond to the government’s concerns over its username feature and has assured that it will not launch the feature in India until discussions are completed.

Published

2 hours ago

on

July 6, 2026

By

WhatsApp

Meta assures the government that the feature will not be introduced in India until ongoing consultations are completed.

Meta-owned WhatsApp has been granted an extension to submit its response to the Centre regarding its proposed username feature, while assuring the government that it will not roll out the feature in India until discussions on the matter are concluded.

According to sources, the government has allowed WhatsApp three additional days to file its response after the company sought more time. The original deadline for the reply was Friday.

The proposed username feature would allow users to connect with others without revealing their phone numbers, a move that has raised concerns within the government over its potential impact on cyber safety.

Last week, the Centre issued a notice to Meta questioning the feature, expressing concerns that it could increase online fraud, phishing attempts, impersonation, and so-called “digital arrest” scams. The government also directed the company to pause the rollout until consultations are completed to its satisfaction.

Sources said representatives from Meta met officials from the Ministry of Electronics and Information Technology (MeitY) on Friday following the issuance of the notice. During the discussions, WhatsApp reportedly assured authorities that the feature would not be introduced in India before the consultation process is completed.

The government has also asked Meta to explain why action should not be initiated under the Information Technology Act and the relevant rules if the proposed feature is found to compromise user safety. It reminded the company that WhatsApp, as a significant social media intermediary, must comply with due diligence obligations under Indian law.

A WhatsApp spokesperson had earlier clarified that the username feature is not yet live and is expected to be introduced gradually later this year.

The company said it has built several safeguards into the feature to prevent impersonation. According to WhatsApp, usernames of public figures, government entities, celebrities, and verified Meta accounts have been reserved so that they can only be claimed by their legitimate owners. It also said lookalike variations of such usernames are being restricted.

WhatsApp also clarified that users will still need a phone number to create and use a WhatsApp account. The username feature is intended only as an alternative way for people to connect.

The company added that users would need to know another person’s exact username before initiating contact. It also plans to limit how many new users an account can message, prevent repeated attempts to guess usernames, and use automated systems to detect impersonation and abusive behaviour.

To help users identify unfamiliar contacts, WhatsApp said it will display contextual information whenever someone sends a message through a username for the first time. Users will be informed whether the sender is a new account, an existing contact, someone who shares a mutual group, or a person located in another country before deciding whether to respond.

Following its notice to WhatsApp, the IT Ministry also issued notices to Telegram and Signal, seeking details on how their existing username-based systems address concerns related to fraud and impersonation. While WhatsApp has around 500 million users in India, Telegram has a significantly smaller user base.

In recent days, Meta and Telegram have also come under regulatory scrutiny on separate issues. The government recently issued a notice to Meta regarding child sexual abuse material appearing in Instagram advertisements, while Telegram was directed to strengthen action against the circulation of pirated films, OTT content, and other copyrighted audio-visual material on its platform.

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