March 29, 2012

India's biggest defense deal in trouble?

It is India’s biggest defence deal till date, an Rs 80,000 crore deal that will provide a new generation of fighter jets to the Indian Airforce. But now questions are being raised by those within the Union Defence Ministry over the evaluation process that led to the decision to award the contract for 126 aircraft to Rafale.

*Sources to TIMES NOW

1 - Procedure followed in calculating the cost of Rafale fighter jet deal was faulty
2 - All the required information about costing of the aircraft was not done properly
3 - Cost of 18 aircraft to be delivered in 'fly away' condition was not done appropriately
4 - Lack of clarity on issues regarding transfer of technology by both key defence ministry officials
5 - Is Rafael actually 10,000 crore rupees cheaper than its rival the Eurofighter?

Reservations which cast a shadow on this multi crore deal. The Opposition wants the Rafale deal investigated adding to the woes of the Union Defence Ministry. But sources say Rafale is unfazed by the aspersions cast on the deal. With the Government now left with just two options, one of doing the due diligence by reevaluating the deal and the other of over-ruling the objections raised by Union Defence Ministry officials. The question is which way will the Government sway?

Times of India

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