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P Chidambaram Slams Government For Rafale Price Escalation Reports, Reiterates Demand For JPC

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The Congress party has once again raised the Rafael issue to target the government of Prime Minister Narendra Modi. It has now alleged that the NDA government has wronged the country by reducing the number of aircraft bought under the deal as it “denied” the IAF the fighter jets it “desperately” needed and gave a “windfall” to Dassault Aviation by paying more per aircraft.

Addressing a press conference, senior Congress leader P Chidambaram said the government did not buy the 90 more aircraft needed by the Air Force and paid Rs 186 crore more to French firm Dassault, maker of Rafale, for 13 India-specific enhancements in the medium multi-role combat aircraft (MMRCA).

The former finance minister reiterated his party’s demand for a joint parliamentary committee (JPC) probe into the Rafale jet deal, saying the decision is not amenable to court but to a parliamentary panel.

Chidambaram’s press conference came in the backdrop of a media report claiming that Prime Minister Narendra Modi’s decision to buy 36 aircraft instead of the 126 asked for by the Indian Air Force pushed the price of each jet up by 41.42 per cent.

“The government has wronged the country in two ways – firstly, it has compromised national security by denying to the Air Force 90 fighter aircraft that they desperately need.

 

“Secondly, it has purchased two squadrons that will cost about 25 million more per aircraft. At the 2016 exchange rate, Euro 25 million is equal to Rs 186 crore. India will pay Rs 186 crore more per aircraft,” Chidambaram told reporters.

“There is no doubt any longer that Rafale aircraft deal deserves to be examined thoroughly by a joint parliamentary committee. The Congress reiterates its demand for constitution of a JPC,” he said.

The Congress leader said he feels that Dassault “is laughing all the way to the bank”, as the NDA government gave a “gift” to the French firm over amortization or recovery on the cost of 13 India-specific enhancements sought in the aircraft that cost 1,300 million Euros.

He said the cost of these enhancements have been recovered by Dassault in 36 aircraft and the same should have been recovered by it for 126 aircraft instead.

“That is a windfall for Dassault. That is the gift that the NDA government has given to Dassault and that is why I said that Dassault is laughing all the way to the bank….The windfall to Dassault was a deliberate decision of NDA government and is highly questionable,” he said.

“The increased price per aircraft is a gift to Dassault that the NDA government gave between April 2015 to August 2016,” he also said.

Chidambaram earlier said that in the light of new facts and revelations, “the question gains greater urgency: why did the government buy only 36 Rafale aircraft instead of 126 aircraft required by the Air Force?.

“The government has compromised national security by denying to the Air Force the 7 squadrons (126 aircraft) that it desperately needs,” he tweeted earlier.

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