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Rahul Gandhi clarifies on defence deals during UPA regime: Here's the full text

9 February, 2018 11:44 PM
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Rahul Gandhi clarifies on defence deals during UPA regime: Here's the full text

Here's the full text of Rahul Gandhi's clarification on defence deals signed during the UPA govt tenures.

New Delhi: Amid a war of words with the Narendra Modi-led BJP government over India's Rafale fighter jet deal with France, Congress chief Rahul Gandhi on Friday clarified on various defence deals agreements reached under the previous UPA governments.

The Congress today released the then Defence Minister AK Antony's reply on the purchase of Mirage-2000 Warplanes in Lok Sabha in 2013. While asking the incumbent Narendra Modi government to share details of the highly 'secretive' Rafale deal, Rahul also sought to know from the ruling side the "purchase price" and other minutest details of each defence deals signed by it.

Rahul also addressed Finance Minister Arun Jaitley as “Mr Jaitlie” in his tweet and asked Defence Minister to tell the nation how much each Rafale jet cost.

Contracts and supplementary agreements comprising repair and re-equipping, logistic support, training, etc were concluded with the Russian side for the acquisition of the aircraft carrier, ex-Admiral Gorshkov, in January 2004 at a cost of US Dollars 974 million.

The Russian side submitted a revised Master Schedule indicating a delay in the project and an increase in price for repair and re-equipping of the aircraft carrier, due to increase in the scope of work not originally envisaged.

Also read: Rahul Gandhi Ran Misinformation Campaign On Rafale Deal: Vijay Rupani

The Government approved the proposal for conducting negotiations with the Russian side for finalizing a revised Repair and Re-equipping Contract and other related contracts/agreements affected due to delay in the project and Additional Works projected.

The negotiations have since been concluded by the Contract Negotiation Committee(CNC). The revised cost of USD 2330 million has been approved by the Government. Prices for the works to be carried out under the revised contracts/agreements are fixed.

The aircraft carrier was originally scheduled to be delivered in August 2008. The ship's delivery is re-scheduled to December 2012. Re-scheduling of the ship's delivery and revision in its cost were necessitated due to the emergence of Additional Works projected, the detailed agreed scope of trials, etc.

(a) & (b): The need to upgrade is driven by the changes in the operational requirements, changes in technology and will apply equally to all vendors. The Total Acquisition Cost model being followed by Ministry of Defence does not include upgrade costs as these are not predictable, quantifiable and verifiable at the time of making the procurement decision. In any case, major upgrade decisions are taken in a competitive environment and suitably negotiated, as and when the requirement arises.

(c) The last contracted price for each Mirage-2000 aircraft in the year 2000 was '133 crore. The contract for the upgrade was signed in 2011, wherein, the cost of upgrading one aircraft was '167 crore. Applying an escalation of 3.5% per annum as per the Pricing Policy Review Committee (PPRC), to the contracted cost of the year 2000, it works out to be '195 crore at 2011 levels. Thus, the upgrade has been undertaken at 85% of the escalated cost of the aircraft. However, this upgrade programme also includes fitment of advanced multi-mode-multi-target radar, reconfigured glass cockpit and advance avionics, state-of-the-an Electronic Warfare system and capability to launch advanced missiles.

(a) & (b): The Defence Acquisition Council has accepted a proposal for the procurement of 42 Sukhoi-30 MKI aircraft from M/s Hindustan Aeronautics Limited, India.The proposal is being further progressed for submitting to the Cabinet Committee on Security. The estimated cost of the project is Rs.20107.40 crores and the aircraft is planned to be delivered during 2014-2018.

(c) to (f): The proposal is being progressed as a repeat order from M/s Hindustan Aeronautics Limited, India under the Defence Procurement Procedure-2008.

Also read: Rahul crossed all limits of propriety, decency, probity in public life by almost condemning SC: BJP


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Comments - 3

8 March, 2018 2:05 PM

no blame game please no politics work for the country at least on defense front


25 February, 2018 7:04 AM

Why the congress has felt the need to clear the air?


11 February, 2018 6:47 AM

I predicted that the Congress will surprise all in the Gujarat elections. Now prepare for another shock in the 2019 general elections. Take my word for it.