Rafale DH/EH of Indian Air Force : News and Discussions
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Rafale's canopy is actually two half stuck to getting with epoxy rather than a single piece of glass. First time I observed it.
US hindering completion of Egypt-France Rafale deal: La Tribune
The French weekly financial newspaper La Tribune reported on Friday that a deal between Cairo and France over the sale of 12 Rafale jet fighters to Egypt has been blocked because the US is refusing to export a component of a cruise missile that is part of the plane.
French sources quoted in the report asserted that the delay in the deal is due to the shortage of the American component of the scalp missiles and not a funding issue as in the past.
La Tribune noted that Dassault Aviation and MBDA declined to confirm reports about the Scalp cruise missile, a low observable air-launched cruise missile.
In response to the report, the Egyptian army’s official spokesperson Tamer El-Refa’ai told Egypt Independent on Sunday that the issue of the missing American component of the Scalp cruise missile is considered as French “internal affairs.”
The newspaper added that France has previously approved the export of the Scalp cruise missiles to Egypt, though the US’s refusal to provide the manufacturer with the American component obstructed this step.
This refusal triggered outrage among Egyptians who are insisting on receiving the Scalp cruise missiles before completing the Rafale deal.
It explained that the Egyptian outrage will push France to seek alternatives to the American components through resorting to another missiles’ manufacturer away from MBDA, or to open high-level communication with the US administration, saying that such communications may take place during the upcoming visit of the French President Emmanuel Macron to US in April.
The French newspaper highlighted that there is a conflict between the US and France regarding French weapons’ deals to Middle East countries including Egypt and United Arab of Emirates [UAE], asserting that the US previously refused to sell French components used to manufacture spy satellites to UAE.
In November 2017, La Tribune said that Egypt is going to sign a military deal with France which will see Egypt buy 12 Rafale fighter aircrafts.
At the time, the newspaper quoted anonymous sources as saying that the French Foreign Minister Jean-Yves Le Drian negotiated the deal with President Abdel-Fattah al-Sisi while attending the World Youth Forum in Sharm El-Sheikh in November 2017.
In February 2015, France agreed to deliver 24 Rafale fighter jets to Egypt at a cost of € 5.2 billion.
The French Rafael manufacturer Dassault Aviation disclosed in March that it would deliver to Egypt eight Rafale fighters this year.
In December 2016, Egypt ranked first among developing nations that imports arms, according to a US congressional report.
Over the past few years, Egypt has finalized several arms deals with a number of countries including France and Russia.
US hindering completion of Egypt-France Rafale deal: La Tribune - Egypt Independent
@randomradio @Picdelamirand-oil @halloweene @vstol Jockey @Aashish @Abingdonboy @Shashank @Ashwin
The French weekly financial newspaper La Tribune reported on Friday that a deal between Cairo and France over the sale of 12 Rafale jet fighters to Egypt has been blocked because the US is refusing to export a component of a cruise missile that is part of the plane.
French sources quoted in the report asserted that the delay in the deal is due to the shortage of the American component of the scalp missiles and not a funding issue as in the past.
La Tribune noted that Dassault Aviation and MBDA declined to confirm reports about the Scalp cruise missile, a low observable air-launched cruise missile.
In response to the report, the Egyptian army’s official spokesperson Tamer El-Refa’ai told Egypt Independent on Sunday that the issue of the missing American component of the Scalp cruise missile is considered as French “internal affairs.”
The newspaper added that France has previously approved the export of the Scalp cruise missiles to Egypt, though the US’s refusal to provide the manufacturer with the American component obstructed this step.
This refusal triggered outrage among Egyptians who are insisting on receiving the Scalp cruise missiles before completing the Rafale deal.
It explained that the Egyptian outrage will push France to seek alternatives to the American components through resorting to another missiles’ manufacturer away from MBDA, or to open high-level communication with the US administration, saying that such communications may take place during the upcoming visit of the French President Emmanuel Macron to US in April.
The French newspaper highlighted that there is a conflict between the US and France regarding French weapons’ deals to Middle East countries including Egypt and United Arab of Emirates [UAE], asserting that the US previously refused to sell French components used to manufacture spy satellites to UAE.
In November 2017, La Tribune said that Egypt is going to sign a military deal with France which will see Egypt buy 12 Rafale fighter aircrafts.
At the time, the newspaper quoted anonymous sources as saying that the French Foreign Minister Jean-Yves Le Drian negotiated the deal with President Abdel-Fattah al-Sisi while attending the World Youth Forum in Sharm El-Sheikh in November 2017.
In February 2015, France agreed to deliver 24 Rafale fighter jets to Egypt at a cost of € 5.2 billion.
The French Rafael manufacturer Dassault Aviation disclosed in March that it would deliver to Egypt eight Rafale fighters this year.
In December 2016, Egypt ranked first among developing nations that imports arms, according to a US congressional report.
Over the past few years, Egypt has finalized several arms deals with a number of countries including France and Russia.
US hindering completion of Egypt-France Rafale deal: La Tribune - Egypt Independent
@randomradio @Picdelamirand-oil @halloweene @vstol Jockey @Aashish @Abingdonboy @Shashank @Ashwin
Hope Egypt is able to resist the pressure and buy this aircraft. USA will definitely use all tricks up their sleeves to jeopardize this deal. Just like they did to our purchase of ELTA 2052 Radars from Israel and currently going after Rafale deal through proxies.US hindering completion of Egypt-France Rafale deal: La Tribune
The French weekly financial newspaper La Tribune reported on Friday that a deal between Cairo and France over the sale of 12 Rafale jet fighters to Egypt has been blocked because the US is refusing to export a component of a cruise missile that is part of the plane.
French sources quoted in the report asserted that the delay in the deal is due to the shortage of the American component of the scalp missiles and not a funding issue as in the past.
La Tribune noted that Dassault Aviation and MBDA declined to confirm reports about the Scalp cruise missile, a low observable air-launched cruise missile.
In response to the report, the Egyptian army’s official spokesperson Tamer El-Refa’ai told Egypt Independent on Sunday that the issue of the missing American component of the Scalp cruise missile is considered as French “internal affairs.”
The newspaper added that France has previously approved the export of the Scalp cruise missiles to Egypt, though the US’s refusal to provide the manufacturer with the American component obstructed this step.
This refusal triggered outrage among Egyptians who are insisting on receiving the Scalp cruise missiles before completing the Rafale deal.
It explained that the Egyptian outrage will push France to seek alternatives to the American components through resorting to another missiles’ manufacturer away from MBDA, or to open high-level communication with the US administration, saying that such communications may take place during the upcoming visit of the French President Emmanuel Macron to US in April.
The French newspaper highlighted that there is a conflict between the US and France regarding French weapons’ deals to Middle East countries including Egypt and United Arab of Emirates [UAE], asserting that the US previously refused to sell French components used to manufacture spy satellites to UAE.
In November 2017, La Tribune said that Egypt is going to sign a military deal with France which will see Egypt buy 12 Rafale fighter aircrafts.
At the time, the newspaper quoted anonymous sources as saying that the French Foreign Minister Jean-Yves Le Drian negotiated the deal with President Abdel-Fattah al-Sisi while attending the World Youth Forum in Sharm El-Sheikh in November 2017.
In February 2015, France agreed to deliver 24 Rafale fighter jets to Egypt at a cost of € 5.2 billion.
The French Rafael manufacturer Dassault Aviation disclosed in March that it would deliver to Egypt eight Rafale fighters this year.
In December 2016, Egypt ranked first among developing nations that imports arms, according to a US congressional report.
Over the past few years, Egypt has finalized several arms deals with a number of countries including France and Russia.
US hindering completion of Egypt-France Rafale deal: La Tribune - Egypt Independent
@randomradio @Picdelamirand-oil @halloweene @vstol Jockey @Aashish @Abingdonboy @Shashank @Ashwin
The article is referring to an ITAR component inside the missile. So that's a surprise.
Time to make a new, more modern missile in cooperation with India.
No UK doesn't believe in the value of ITAR.
We will replace the component and that's it. It is no more difficult than an obsolescence treatment, something very common.
SCALP doesn't need GPS to reach its objective. I think the componant is a FPGA, it could have been hard to replace at the start of the program, but now with the improved performance it will be easy.
OPINIONSDecoding the India-France G2G Rafale deal- Why it is not a ‘Scam’
ByMyIndMakers
Posted on February 20, 2018
SHARE TWEET SHARE EMAIL
The failure of communications on the part of the Modi government aside, it is astonishing that opposition parties led by Congress President Rahul Gandhi and their vile media cronies are severely indulging in mudslinging the government for a contrived Rafale-‘scam’.
Unfounded allegations are being made regarding the procurement of 36 Rafale aircraft in fly-away condition from France. This would typically not have merited a response but for having the potential of severe damage to the national security by repeatedly perpetrating the misleading, irresponsible statements.
Let us examine the validity of each such claim by understanding the procedure and also breaking down the deal, claim by claim.
1. Doubting the Procedural Malfunctioning:
Since 2002, the procurement of all major equipment, weapon systems, and platforms has been governed by the Defense Procurement Procedure (DPP).
In 2013 DPP, the UPA government enacted Articles dealing with Inter-Governmental Agreements (IGA). The DPP does envisage situations where it allows procurement under IGAs from “friendly foreign countries which may be necessitated due to geo-strategic advantages that are likely to accrue to our country” and recognizes the fact that such procurements do not strictly follow the standard procurement procedure.
The procurement, based on these IGAs, do NOT require (Cabinet Committee on Security) CCS clearance, just the clearance of a Competent Financial Authority (CFA), the CCS in this case.
The claim is that no ministry or Cabinet body was consulted before Prime Minister Narendra Modi committed India to the Rafale purchase on 10th April 2015. The fact is that the CCS takes decisions concerning all such acquisitions on the recommendations of the Ministry of Defense (MoD).
The deal is in accordance with the DPP in all aspects including mandating, conducting and monitoring of negotiations and seeking all necessary approvals, including that of the CCS, before entering into the IGA.
2. Price-Specification Details:
The opposition’s next demand with the GOI is that the “India-Specific-Upgrades” to the fighter jets, be also made public. Now, this is not only unrealistic but utterly foolish. Either they are trying to fool the people or making a fool of themselves.
These details would also come under the ambit of the Article 10 of the bilateral India-France Security Agreement of 2008 signed by the UPA Government. Also, it is difficult to recall any such instance of the granular details of the price breakup ever being disclosed.
In keeping with confidentiality requirements, the UPA Government had also expressed its inability to divulge commercial aspects of defense deals, disclose the price of various defense procurements in its responses to Parliament Questions stating, “Divulging details in this regard on the floor of the house would not be in the interest of national security.”
Examples:
Why play cheap politics now?
3. Why no reconsideration of Eurofighter?
In another effort to twist facts, the Government is asked by Congress President, why it did not conduct negotiations with a Eurofighter representing a competing fighter aircraft. It seems to have been conveniently forgotten that the then UPA Government itself had rejected Eurofighter’s unsolicited offer made days after the closure of the bid process, and declared Rafale (DA) as the L1 bidder and had commenced negotiations with it in February 2012.
4. Why 36 and not 126?
What was the need to discard negotiations for 126 Rafale aircraft from DA, out of which 108 were to be made in India and to opt for the outright purchase of 36 aircraft from the same company?
The DA’s aircraft was selected after a long and unblemished process of evaluations and trials by IAF during 2009-10. The price negotiations for the acquisition of 126 aircraft started in 2012 that ran into a stalemate till 2014.
The squadron strength of the IAF kept depleting, with no immediate prospect of new acquisitions. We have hostile neighbors; hence we needed the aircraft and quick. Given this perspective, it was perhaps a pragmatic decision to call off the negotiations.
5. Exorbitant Price?
The comparisons between the per unit price at which the NDA Government has signed the contract in 2016 and the per unit price at which the UPA government was negotiating the deal for 126 aircraft, are not at all tenable. Another reason why it cannot be directly compared is that the deliverables in the two cases are entirely divergent.
The fact is that the approximate acquisition cost of the Rafale aircraft has already been provided to the Parliament. The total Rafale Deal Value is Euro 7.88 Bn (Approx Rs. 59,630 Crores), and here is the deal breakdown:
Unit Cost: Euro 91.7 Mn (Approx Rs. 688.30 Crores) Per Aircraft x 36 = Euro 3.30 Bn
Weapons including SCALP ALCM (Air Launched Cruise Missiles) and METEOR BVRAAM (Beyond Visual Range Air to Air Missiles) – Approx Euro 710 Mn
Performance-Based Logistics Support – Approx Euro 350 Mn
India Specific Enhancement (ISE) – Approx Euro 1.7 Bn
Infrastructure (Creating world-class BASE level, maintenance operations, state of the art climate controlled hardened air shelters, maintenance support setups at both bases for both aircraft) – Approx Euro 1.8 Bn
These costs are one-off and will not be incurred for any future batches. It also includes AMC of simulators for ten years and training of IAF pilots and engineers.
The most significant drawback of the present Rafale deal is small ordering quantity; 36 against a total requirement of 189 units (126 + 63 units follow-on clause). It can be addressed by additional follow-on orders that, without any doubt, would benefit immensely from these new conditions.
The 2016 deal is for highly advanced versions of the Rafale (F3+), highly customized to operate in Indian conditions, compared to the original MMRCA was for the F2 version minus any Indian specific upgrades.
In the earlier proposal of the UPA Govt., which ended in a stalemate, there was no provision for transfer of technology but only to manufacture under license. Another point of departure from the original deal is that the NDA’s Rafale deal includes 50% offsets as opposed to earlier 30%.
Furthermore, the NDA Rafale deal includes a comprehensive Performance Based Logistics (PBL) agreement wherein DA is legally obligated to assure that 75% of the IAF’s Rafale fleet is available for operations at any given moment in time. For comparison, in 2015 the IAF’s SU-30MKI fighter fleet had an availability rate of less than 50%.
It is true that in the absence of a system of proactive disclosure of the defense deals have not helped matters and the procedural requirement is only to assess the reasonableness of the price quoted by the vendor.
However, to form a definitive opinion about whether or not the price, in this case, is reasonable, it is essential to see how it compares with prices offered to other buyers.
Qatar – The Rafale purchase price per unit including weapons, infrastructure, and training, but without country-specific enhancements. – Euro 262.5 Mn.
Eqypt – In a similar deal for purchase of 24 Rafale fighter jets Egypt had to shell out 5.2 Bn Euros. Unit Price – Euro 216.7 Mn.
Even if we include the one-off costs in case of India, the per unit cost comes to Euro 218.8 Mn. So, where is the price mismatch?
6. Why Reliance and not HAL?
So, does it finally boils down to the selection of Anil Ambani’s Reliance Defense (DRAL) as the Indian Offset Partner (IOP) by Dassault?
First, why not state-owned Hindustan Aeronautics Limited (HAL)?
In 2011 the US Ambassador had flagged the acute disrepair in HAL including lying & pilferage. The potential for HAL to successfully partner with US firms on a truly advanced aircraft remains untested and suspect,” US Ambassador, Timothy Roemer. Dassault has also been concerned over HAL’s capabilities.
It’s not the NDA government that refused HAL rather DA was reluctant for not being convinced about manufacturing ability of HAL and therefore unwilling to take the liability of the jet made by HAL.
Despite that at least till 2015, the NDA government tried to get DA to accept liability for the HAL manufacturing.
Now let’s look at the claim of Modi government favoring the Ambanis.
We do not know if Dassault intends to discharge the entire obligation only through DRAL. The offset contract is between the MoD and the vendor DA, and the MoD has no role in the selection of the IOP by the vendor.
Under the contract, DA and its Tier-I/II companies have to discharge an offset obligation of nearly Rs 30,000 crore. They need able IOPs who can fulfill this mammoth obligation.
Considering that the vendor carries the full responsibility for discharging the offset obligation, it would be odd to believe that Dassault would choose an IOP who cannot deliver. It will expose DA to the risk of defaulting on its offset obligation that entails penalties and much more.
Conclusion:
Though, I have no doubts that the situation could have been handled better. The fact is Congress party, and its mouthpieces in media are raising questions based on prejudiced perceptions rather than the hard facts.
Price wise the NDA Rafale deal is not only unquestionably reasonable but far superior to the earlier UPA estimation. If one looks into the 2016 agreement in its entirety, it can be firmly reiterated that the deal secured by the Modi Government is better in terms of capability, price, equipment, delivery, maintenance, training, and everything than what was notionally negotiated by the UPA Government in a process it could not conclude in ten years.
Instead of admiration and applause for the attempts to modernize the armed forces, these nefarious campaigns based on unfounded allegations, crafted assumptions and labeling it a “scam,” especially in such delicate defense procurement, have both real and very damaging effect.
Decoding the India-France G2G Rafale deal- Why it is not a 'Scam'
ByMyIndMakers
Posted on February 20, 2018
SHARE TWEET SHARE EMAIL
The failure of communications on the part of the Modi government aside, it is astonishing that opposition parties led by Congress President Rahul Gandhi and their vile media cronies are severely indulging in mudslinging the government for a contrived Rafale-‘scam’.
Unfounded allegations are being made regarding the procurement of 36 Rafale aircraft in fly-away condition from France. This would typically not have merited a response but for having the potential of severe damage to the national security by repeatedly perpetrating the misleading, irresponsible statements.
Let us examine the validity of each such claim by understanding the procedure and also breaking down the deal, claim by claim.
1. Doubting the Procedural Malfunctioning:
Since 2002, the procurement of all major equipment, weapon systems, and platforms has been governed by the Defense Procurement Procedure (DPP).
In 2013 DPP, the UPA government enacted Articles dealing with Inter-Governmental Agreements (IGA). The DPP does envisage situations where it allows procurement under IGAs from “friendly foreign countries which may be necessitated due to geo-strategic advantages that are likely to accrue to our country” and recognizes the fact that such procurements do not strictly follow the standard procurement procedure.
The procurement, based on these IGAs, do NOT require (Cabinet Committee on Security) CCS clearance, just the clearance of a Competent Financial Authority (CFA), the CCS in this case.
The claim is that no ministry or Cabinet body was consulted before Prime Minister Narendra Modi committed India to the Rafale purchase on 10th April 2015. The fact is that the CCS takes decisions concerning all such acquisitions on the recommendations of the Ministry of Defense (MoD).
The deal is in accordance with the DPP in all aspects including mandating, conducting and monitoring of negotiations and seeking all necessary approvals, including that of the CCS, before entering into the IGA.
2. Price-Specification Details:
The opposition’s next demand with the GOI is that the “India-Specific-Upgrades” to the fighter jets, be also made public. Now, this is not only unrealistic but utterly foolish. Either they are trying to fool the people or making a fool of themselves.
These details would also come under the ambit of the Article 10 of the bilateral India-France Security Agreement of 2008 signed by the UPA Government. Also, it is difficult to recall any such instance of the granular details of the price breakup ever being disclosed.
In keeping with confidentiality requirements, the UPA Government had also expressed its inability to divulge commercial aspects of defense deals, disclose the price of various defense procurements in its responses to Parliament Questions stating, “Divulging details in this regard on the floor of the house would not be in the interest of national security.”
Examples:
Why play cheap politics now?
3. Why no reconsideration of Eurofighter?
In another effort to twist facts, the Government is asked by Congress President, why it did not conduct negotiations with a Eurofighter representing a competing fighter aircraft. It seems to have been conveniently forgotten that the then UPA Government itself had rejected Eurofighter’s unsolicited offer made days after the closure of the bid process, and declared Rafale (DA) as the L1 bidder and had commenced negotiations with it in February 2012.
4. Why 36 and not 126?
What was the need to discard negotiations for 126 Rafale aircraft from DA, out of which 108 were to be made in India and to opt for the outright purchase of 36 aircraft from the same company?
The DA’s aircraft was selected after a long and unblemished process of evaluations and trials by IAF during 2009-10. The price negotiations for the acquisition of 126 aircraft started in 2012 that ran into a stalemate till 2014.
The squadron strength of the IAF kept depleting, with no immediate prospect of new acquisitions. We have hostile neighbors; hence we needed the aircraft and quick. Given this perspective, it was perhaps a pragmatic decision to call off the negotiations.
5. Exorbitant Price?
The comparisons between the per unit price at which the NDA Government has signed the contract in 2016 and the per unit price at which the UPA government was negotiating the deal for 126 aircraft, are not at all tenable. Another reason why it cannot be directly compared is that the deliverables in the two cases are entirely divergent.
The fact is that the approximate acquisition cost of the Rafale aircraft has already been provided to the Parliament. The total Rafale Deal Value is Euro 7.88 Bn (Approx Rs. 59,630 Crores), and here is the deal breakdown:
Unit Cost: Euro 91.7 Mn (Approx Rs. 688.30 Crores) Per Aircraft x 36 = Euro 3.30 Bn
Weapons including SCALP ALCM (Air Launched Cruise Missiles) and METEOR BVRAAM (Beyond Visual Range Air to Air Missiles) – Approx Euro 710 Mn
Performance-Based Logistics Support – Approx Euro 350 Mn
India Specific Enhancement (ISE) – Approx Euro 1.7 Bn
Infrastructure (Creating world-class BASE level, maintenance operations, state of the art climate controlled hardened air shelters, maintenance support setups at both bases for both aircraft) – Approx Euro 1.8 Bn
These costs are one-off and will not be incurred for any future batches. It also includes AMC of simulators for ten years and training of IAF pilots and engineers.
The most significant drawback of the present Rafale deal is small ordering quantity; 36 against a total requirement of 189 units (126 + 63 units follow-on clause). It can be addressed by additional follow-on orders that, without any doubt, would benefit immensely from these new conditions.
The 2016 deal is for highly advanced versions of the Rafale (F3+), highly customized to operate in Indian conditions, compared to the original MMRCA was for the F2 version minus any Indian specific upgrades.
In the earlier proposal of the UPA Govt., which ended in a stalemate, there was no provision for transfer of technology but only to manufacture under license. Another point of departure from the original deal is that the NDA’s Rafale deal includes 50% offsets as opposed to earlier 30%.
Furthermore, the NDA Rafale deal includes a comprehensive Performance Based Logistics (PBL) agreement wherein DA is legally obligated to assure that 75% of the IAF’s Rafale fleet is available for operations at any given moment in time. For comparison, in 2015 the IAF’s SU-30MKI fighter fleet had an availability rate of less than 50%.
It is true that in the absence of a system of proactive disclosure of the defense deals have not helped matters and the procedural requirement is only to assess the reasonableness of the price quoted by the vendor.
However, to form a definitive opinion about whether or not the price, in this case, is reasonable, it is essential to see how it compares with prices offered to other buyers.
Qatar – The Rafale purchase price per unit including weapons, infrastructure, and training, but without country-specific enhancements. – Euro 262.5 Mn.
Eqypt – In a similar deal for purchase of 24 Rafale fighter jets Egypt had to shell out 5.2 Bn Euros. Unit Price – Euro 216.7 Mn.
Even if we include the one-off costs in case of India, the per unit cost comes to Euro 218.8 Mn. So, where is the price mismatch?
6. Why Reliance and not HAL?
So, does it finally boils down to the selection of Anil Ambani’s Reliance Defense (DRAL) as the Indian Offset Partner (IOP) by Dassault?
First, why not state-owned Hindustan Aeronautics Limited (HAL)?
In 2011 the US Ambassador had flagged the acute disrepair in HAL including lying & pilferage. The potential for HAL to successfully partner with US firms on a truly advanced aircraft remains untested and suspect,” US Ambassador, Timothy Roemer. Dassault has also been concerned over HAL’s capabilities.
It’s not the NDA government that refused HAL rather DA was reluctant for not being convinced about manufacturing ability of HAL and therefore unwilling to take the liability of the jet made by HAL.
Despite that at least till 2015, the NDA government tried to get DA to accept liability for the HAL manufacturing.
Now let’s look at the claim of Modi government favoring the Ambanis.
We do not know if Dassault intends to discharge the entire obligation only through DRAL. The offset contract is between the MoD and the vendor DA, and the MoD has no role in the selection of the IOP by the vendor.
Under the contract, DA and its Tier-I/II companies have to discharge an offset obligation of nearly Rs 30,000 crore. They need able IOPs who can fulfill this mammoth obligation.
Considering that the vendor carries the full responsibility for discharging the offset obligation, it would be odd to believe that Dassault would choose an IOP who cannot deliver. It will expose DA to the risk of defaulting on its offset obligation that entails penalties and much more.
Conclusion:
Though, I have no doubts that the situation could have been handled better. The fact is Congress party, and its mouthpieces in media are raising questions based on prejudiced perceptions rather than the hard facts.
Price wise the NDA Rafale deal is not only unquestionably reasonable but far superior to the earlier UPA estimation. If one looks into the 2016 agreement in its entirety, it can be firmly reiterated that the deal secured by the Modi Government is better in terms of capability, price, equipment, delivery, maintenance, training, and everything than what was notionally negotiated by the UPA Government in a process it could not conclude in ten years.
Instead of admiration and applause for the attempts to modernize the armed forces, these nefarious campaigns based on unfounded allegations, crafted assumptions and labeling it a “scam,” especially in such delicate defense procurement, have both real and very damaging effect.
Decoding the India-France G2G Rafale deal- Why it is not a 'Scam'
OPINIONSDecoding the India-France G2G Rafale deal- Why it is not a ‘Scam’
ByMyIndMakers
Posted on February 20, 2018
SHARE TWEET SHARE EMAIL
The failure of communications on the part of the Modi government aside, it is astonishing that opposition parties led by Congress President Rahul Gandhi and their vile media cronies are severely indulging in mudslinging the government for a contrived Rafale-‘scam’.
Unfounded allegations are being made regarding the procurement of 36 Rafale aircraft in fly-away condition from France. This would typically not have merited a response but for having the potential of severe damage to the national security by repeatedly perpetrating the misleading, irresponsible statements.
Let us examine the validity of each such claim by understanding the procedure and also breaking down the deal, claim by claim.
1. Doubting the Procedural Malfunctioning:
Since 2002, the procurement of all major equipment, weapon systems, and platforms has been governed by the Defense Procurement Procedure (DPP).
In 2013 DPP, the UPA government enacted Articles dealing with Inter-Governmental Agreements (IGA). The DPP does envisage situations where it allows procurement under IGAs from “friendly foreign countries which may be necessitated due to geo-strategic advantages that are likely to accrue to our country” and recognizes the fact that such procurements do not strictly follow the standard procurement procedure.
The procurement, based on these IGAs, do NOT require (Cabinet Committee on Security) CCS clearance, just the clearance of a Competent Financial Authority (CFA), the CCS in this case.
The claim is that no ministry or Cabinet body was consulted before Prime Minister Narendra Modi committed India to the Rafale purchase on 10th April 2015. The fact is that the CCS takes decisions concerning all such acquisitions on the recommendations of the Ministry of Defense (MoD).
The deal is in accordance with the DPP in all aspects including mandating, conducting and monitoring of negotiations and seeking all necessary approvals, including that of the CCS, before entering into the IGA.
2. Price-Specification Details:
The opposition’s next demand with the GOI is that the “India-Specific-Upgrades” to the fighter jets, be also made public. Now, this is not only unrealistic but utterly foolish. Either they are trying to fool the people or making a fool of themselves.
These details would also come under the ambit of the Article 10 of the bilateral India-France Security Agreement of 2008 signed by the UPA Government. Also, it is difficult to recall any such instance of the granular details of the price breakup ever being disclosed.
In keeping with confidentiality requirements, the UPA Government had also expressed its inability to divulge commercial aspects of defense deals, disclose the price of various defense procurements in its responses to Parliament Questions stating, “Divulging details in this regard on the floor of the house would not be in the interest of national security.”
Examples:
Why play cheap politics now?
3. Why no reconsideration of Eurofighter?
In another effort to twist facts, the Government is asked by Congress President, why it did not conduct negotiations with a Eurofighter representing a competing fighter aircraft. It seems to have been conveniently forgotten that the then UPA Government itself had rejected Eurofighter’s unsolicited offer made days after the closure of the bid process, and declared Rafale (DA) as the L1 bidder and had commenced negotiations with it in February 2012.
4. Why 36 and not 126?
What was the need to discard negotiations for 126 Rafale aircraft from DA, out of which 108 were to be made in India and to opt for the outright purchase of 36 aircraft from the same company?
The DA’s aircraft was selected after a long and unblemished process of evaluations and trials by IAF during 2009-10. The price negotiations for the acquisition of 126 aircraft started in 2012 that ran into a stalemate till 2014.
The squadron strength of the IAF kept depleting, with no immediate prospect of new acquisitions. We have hostile neighbors; hence we needed the aircraft and quick. Given this perspective, it was perhaps a pragmatic decision to call off the negotiations.
5. Exorbitant Price?
The comparisons between the per unit price at which the NDA Government has signed the contract in 2016 and the per unit price at which the UPA government was negotiating the deal for 126 aircraft, are not at all tenable. Another reason why it cannot be directly compared is that the deliverables in the two cases are entirely divergent.
The fact is that the approximate acquisition cost of the Rafale aircraft has already been provided to the Parliament. The total Rafale Deal Value is Euro 7.88 Bn (Approx Rs. 59,630 Crores), and here is the deal breakdown:
Unit Cost: Euro 91.7 Mn (Approx Rs. 688.30 Crores) Per Aircraft x 36 = Euro 3.30 Bn
Weapons including SCALP ALCM (Air Launched Cruise Missiles) and METEOR BVRAAM (Beyond Visual Range Air to Air Missiles) – Approx Euro 710 Mn
Performance-Based Logistics Support – Approx Euro 350 Mn
India Specific Enhancement (ISE) – Approx Euro 1.7 Bn
Infrastructure (Creating world-class BASE level, maintenance operations, state of the art climate controlled hardened air shelters, maintenance support setups at both bases for both aircraft) – Approx Euro 1.8 Bn
These costs are one-off and will not be incurred for any future batches. It also includes AMC of simulators for ten years and training of IAF pilots and engineers.
The most significant drawback of the present Rafale deal is small ordering quantity; 36 against a total requirement of 189 units (126 + 63 units follow-on clause). It can be addressed by additional follow-on orders that, without any doubt, would benefit immensely from these new conditions.
The 2016 deal is for highly advanced versions of the Rafale (F3+), highly customized to operate in Indian conditions, compared to the original MMRCA was for the F2 version minus any Indian specific upgrades.
In the earlier proposal of the UPA Govt., which ended in a stalemate, there was no provision for transfer of technology but only to manufacture under license. Another point of departure from the original deal is that the NDA’s Rafale deal includes 50% offsets as opposed to earlier 30%.
Furthermore, the NDA Rafale deal includes a comprehensive Performance Based Logistics (PBL) agreement wherein DA is legally obligated to assure that 75% of the IAF’s Rafale fleet is available for operations at any given moment in time. For comparison, in 2015 the IAF’s SU-30MKI fighter fleet had an availability rate of less than 50%.
It is true that in the absence of a system of proactive disclosure of the defense deals have not helped matters and the procedural requirement is only to assess the reasonableness of the price quoted by the vendor.
However, to form a definitive opinion about whether or not the price, in this case, is reasonable, it is essential to see how it compares with prices offered to other buyers.
Qatar – The Rafale purchase price per unit including weapons, infrastructure, and training, but without country-specific enhancements. – Euro 262.5 Mn.
Eqypt – In a similar deal for purchase of 24 Rafale fighter jets Egypt had to shell out 5.2 Bn Euros. Unit Price – Euro 216.7 Mn.
Even if we include the one-off costs in case of India, the per unit cost comes to Euro 218.8 Mn. So, where is the price mismatch?
6. Why Reliance and not HAL?
So, does it finally boils down to the selection of Anil Ambani’s Reliance Defense (DRAL) as the Indian Offset Partner (IOP) by Dassault?
First, why not state-owned Hindustan Aeronautics Limited (HAL)?
In 2011 the US Ambassador had flagged the acute disrepair in HAL including lying & pilferage. The potential for HAL to successfully partner with US firms on a truly advanced aircraft remains untested and suspect,” US Ambassador, Timothy Roemer. Dassault has also been concerned over HAL’s capabilities.
It’s not the NDA government that refused HAL rather DA was reluctant for not being convinced about manufacturing ability of HAL and therefore unwilling to take the liability of the jet made by HAL.
Despite that at least till 2015, the NDA government tried to get DA to accept liability for the HAL manufacturing.
Now let’s look at the claim of Modi government favoring the Ambanis.
We do not know if Dassault intends to discharge the entire obligation only through DRAL. The offset contract is between the MoD and the vendor DA, and the MoD has no role in the selection of the IOP by the vendor.
Under the contract, DA and its Tier-I/II companies have to discharge an offset obligation of nearly Rs 30,000 crore. They need able IOPs who can fulfill this mammoth obligation.
Considering that the vendor carries the full responsibility for discharging the offset obligation, it would be odd to believe that Dassault would choose an IOP who cannot deliver. It will expose DA to the risk of defaulting on its offset obligation that entails penalties and much more.
Conclusion:
Though, I have no doubts that the situation could have been handled better. The fact is Congress party, and its mouthpieces in media are raising questions based on prejudiced perceptions rather than the hard facts.
Price wise the NDA Rafale deal is not only unquestionably reasonable but far superior to the earlier UPA estimation. If one looks into the 2016 agreement in its entirety, it can be firmly reiterated that the deal secured by the Modi Government is better in terms of capability, price, equipment, delivery, maintenance, training, and everything than what was notionally negotiated by the UPA Government in a process it could not conclude in ten years.
Instead of admiration and applause for the attempts to modernize the armed forces, these nefarious campaigns based on unfounded allegations, crafted assumptions and labeling it a “scam,” especially in such delicate defense procurement, have both real and very damaging effect.
Decoding the India-France G2G Rafale deal- Why it is not a 'Scam'
Such a long story is in fact not necessary when only one argument is good enough.
Rafale is not a scam because it's a GTG. The end.
But it's interesting to have the price of € 91.7 Million for one F3R unit.Such a long story is in fact not necessary when only one argument is good enough.
Rafale is not a scam because it's a GTG. The end.
By the way I calculated that Dassault, Safran and Thales have € 6.25 billion investments to recover with export. Also that the fly away cost is € 73 millions so the margin is 18.7 Millions and Dassault have to sell 335 Rafale at export with Mérignac production to recover (it will not recover with Rafale procured from DRAL).
Also the price of 688.3 Crores by unit means that Dral F3R Rafale will be 551 Crores.
Dassault Systemes extends global education initiative to India
NEW DELHI: With an aim to help transform education and research in India, 3D Experience major Dassault Systemes on Thursday extended its global initiative "La Fondation Dassault Systemes" to the country.
"La Fondation Dassault Systemes", currently operational in Europe and the US, is dedicated to transforming the future of education and research with the learning and discovery capabilities of 3D technology and virtual universes.
It will provide grants, digital content and skillsets in virtual technologies to qualified non-commercial, non-profit projects proposed by schools, universities, engineering/science colleges, researchers, museums and other foundations in the country.
"Dassault Systèmes in India has been running many academia programmes with the objective of transforming engineering education. With the formation of 'La Fondation Dassault Systemes' in India, we will take our contribution to transform education to the next level," said Sudarshan Mogasale, CEO of Dassault Systemes R&D centre (3DPLM) and Chairman of La Fondation in India.
The foundation has already announced two projects in India: an 'Innovation Hub' at Bharatiya Vidya Bhavan's Muktangan Exploratory Science Centre in Pune and the design and development of 'Solar Powered Passenger Vehicle and Charging station' -- a project undertaken by Pimpri Chinchwad Education Trust's Pimpri Chinchwad College of Engineering in Pune.
"Dassault Systemes Foundation India will launch its full-fledged operations in the next quarter and will call for non-commercial projects in the education and research domains," he added.
The foundation will help foster greater knowledge in the 3D content, technology and simulation applications that have long been used by industry for the design, engineering and manufacturing of most of the products society relies on today.
The foundation started its operations in Europe in 2015 and in the US in 2017.
"It seems relevant to extend our action to India, because of its large percentage of young population, out of which 1.5 million engineers graduate every year. La Fondation Dassault Systèmes in India will support projects to enhance their skills, the applicability of their knowledge to the future of the industry," noted Thibault de Tersant, President, La Fondation Dassault Systemes.
Read more at:
//economictimes.indiatimes.com/articleshow/63026076.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
NEW DELHI: With an aim to help transform education and research in India, 3D Experience major Dassault Systemes on Thursday extended its global initiative "La Fondation Dassault Systemes" to the country.
"La Fondation Dassault Systemes", currently operational in Europe and the US, is dedicated to transforming the future of education and research with the learning and discovery capabilities of 3D technology and virtual universes.
It will provide grants, digital content and skillsets in virtual technologies to qualified non-commercial, non-profit projects proposed by schools, universities, engineering/science colleges, researchers, museums and other foundations in the country.
"Dassault Systèmes in India has been running many academia programmes with the objective of transforming engineering education. With the formation of 'La Fondation Dassault Systemes' in India, we will take our contribution to transform education to the next level," said Sudarshan Mogasale, CEO of Dassault Systemes R&D centre (3DPLM) and Chairman of La Fondation in India.
The foundation has already announced two projects in India: an 'Innovation Hub' at Bharatiya Vidya Bhavan's Muktangan Exploratory Science Centre in Pune and the design and development of 'Solar Powered Passenger Vehicle and Charging station' -- a project undertaken by Pimpri Chinchwad Education Trust's Pimpri Chinchwad College of Engineering in Pune.
"Dassault Systemes Foundation India will launch its full-fledged operations in the next quarter and will call for non-commercial projects in the education and research domains," he added.
The foundation will help foster greater knowledge in the 3D content, technology and simulation applications that have long been used by industry for the design, engineering and manufacturing of most of the products society relies on today.
The foundation started its operations in Europe in 2015 and in the US in 2017.
"It seems relevant to extend our action to India, because of its large percentage of young population, out of which 1.5 million engineers graduate every year. La Fondation Dassault Systèmes in India will support projects to enhance their skills, the applicability of their knowledge to the future of the industry," noted Thibault de Tersant, President, La Fondation Dassault Systemes.
Read more at:
//economictimes.indiatimes.com/articleshow/63026076.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Reliance Aerostructure-Thales JV gets CCI approval
NEW DELHI: Fair trade regulator CCI has given its nod to the formation of joint venture between Reliance Aerostructure and Thales India.
Reliance Infrastructure-promoted Reliance Aerostructure would have 51 per cent stake in the entity.
The joint venture would be known as 'Thales Reliance Defence Systems'.
In a tweet today, the Competition Commission of India (CCI) said it has approved the formation of joint venture between Reliance Aerostructure Ltd and Thales India Pvt Ltd.
Deals beyond a certain threshold require the fair trade regulator's clearance.
The proposal to set up the joint venture was announced in June 2017.
"Leveraging Thales offset commitment as part of the Rafale contract, the joint venture is to develop Indian capabilities to integrate and maintain the radar and electronic warfare sensors," a joint statement from the companies had said last year.
The joint venture would develop skills and activity in the Special Economic Zone of Mihan-Nagpur together with an Indian supply chain for the manufacturing of microwave technologies and high performance airborne electronics, it had said.
NEW DELHI: Fair trade regulator CCI has given its nod to the formation of joint venture between Reliance Aerostructure and Thales India.
Reliance Infrastructure-promoted Reliance Aerostructure would have 51 per cent stake in the entity.
The joint venture would be known as 'Thales Reliance Defence Systems'.
In a tweet today, the Competition Commission of India (CCI) said it has approved the formation of joint venture between Reliance Aerostructure Ltd and Thales India Pvt Ltd.
Deals beyond a certain threshold require the fair trade regulator's clearance.
The proposal to set up the joint venture was announced in June 2017.
"Leveraging Thales offset commitment as part of the Rafale contract, the joint venture is to develop Indian capabilities to integrate and maintain the radar and electronic warfare sensors," a joint statement from the companies had said last year.
The joint venture would develop skills and activity in the Special Economic Zone of Mihan-Nagpur together with an Indian supply chain for the manufacturing of microwave technologies and high performance airborne electronics, it had said.
The us point of view on F-35 and Rafale:
doesn't work directly, look at the video in this page:
The Pentagon is trying to figure out the true cost of its costliest weapons system, the F-35
doesn't work directly, look at the video in this page:
The Pentagon is trying to figure out the true cost of its costliest weapons system, the F-35
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So why using a US component when an alternative seem very easy to find? It's a mistake.
No it would have been hard to replace at the begining of the project but with the improvment of performance it's now easy. And it's not easy to impose ITAR Free approach to UK.