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Thursday, March 28, 2024
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HomeTalk PointWithout facts, political debates on Rafale can become a petty slugfest

Without facts, political debates on Rafale can become a petty slugfest

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The recent muckraking over the Rafale fighter jet deal has seen shots being exchanged between the Congress and the BJP over alleged overpricing and crony capitalism. The deal has a complicated history, starting from a selection by the UPA and a signing by the NDA in 2016. As the debate heats up, we ask: 

Is political debate on defence deals like the Rafale fighter jet necessary for accountability?

An honest political debate can be an effective tool for unravelling a false narrative, provided it is conducted within the confines of objectivity based on indisputable facts and logical arguments. This is a tall order. No wonder then that, more often than not, political debates end up as petty slugfests. The current debate on the Rafale deal seems to be going that way.

It is largely focused on four issues: procedural deviation, high price, no-transfer of technology, and the public sector Hindustan Aeronautics (HAL) being deprived of the contract.

The Defence Procurement Procedure (DPP) permits procurement of equipment from friendly foreign countries on geo-strategic considerations through inter-governmental agreements that are based on terms and conditions mutually agreed upon by the governments of both the countries. The DPP recognises that such procurements would not classically follow the standard procurement procedure.

The programme for acquisition of 126 aircraft was aborted after nearly two years of inconclusive contract negotiations. The cost could not have been finalised till the actual contract is signed and successfully concluded. That being the case, per unit cost in the now-aborted programme, which envisaged a completely different set of terms and conditions, and the per unit price at which the contract for 36 aircraft has been concluded are not quite comparable.

The contract in question for procurement of aircraft in a fly-away condition does not entail any licensed production in India by HAL or any other entity. Apparently, the manufacturers have tied up with an Indian private sector entity of their own volition for the purpose of discharging their offset obligation. The procedure permits this.

The trouble is that there has been little focus in the on-going debate on the nature of procedural deviations in the contract for 36 fighter aircraft. And, more importantly, on how such deviations reflect a dishonest motive rather than being necessitated by the imperatives of arresting the attrition in the squadron strength of the Indian air force. The absence of authentic information about the price and other terms and conditions of the two programmes being compared has not helped the matters either.

Amit Cowshish is former Financial Advisor (acquisition), distinguished fellow, IDSA.

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