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September 22, 2018

We chose Reliance Defence, says Dassault after Francois Hollande’s bombshell on Rafale deal


French defence manufacturing giant Dassault Aviation has refuted the claims made by former French President Francois Hollande and said that it was Dassault who selected Anil Dhirubhai Ambani's Reliance Defence and not the Indian government.

On Friday, Hollande revealed that the choice to select Reliance Defence as the offset partner was made by the Indian government and France had no option but to go ahead with it. He said this in an exclusive interview to French journal Mediapart.

The revelation has triggered a major controversy in India with the Opposition mounting pressure on the Modi government. The government has been claiming that it had no role in the agreement between Dassault and Reliance.

Responding to Hollande's revelation, Dassault Aviation has issued a statement that effectively reiterates the Indian government's stand that Reliance Defence was selected by Dassault and not the Indian government.

"This offsets contract is delivered in compliance with the Defence Procurement Procedure (DPP) 2016 regulations. In this framework, and in accordance with the policy of Make in India, Dassault Aviation has decided to make a partnership with India's Reliance Group. This is Dassault Aviation's choice," the statement reads.

It clarified that although the Rafale deal was a contract between the Indian and the French governments, it provided for a separate contract in which Dassault Aviation committed to making compensation investments (offsets) in India equivalent to 50 per cent of the value of the purchase.

The French aviation company also said that contracts were signed with companies other than Reliance, as part of the offsets contract under the Rafale deal.

"Other partnerships have been signed with other companies such as BTSL, DEFSYS, Kinetic, Mahindra, Maini, SAMTEL. Other negotiations are ongoing with hundred-odd other potential partners," the firm said.

 indiatoday

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