News By/Courtesy: Sanveer Singh | 08 Apr 2020 1:04am IST


  • Costing controversy of Rafale deal
  • Supreme court gave judgement on receipt of PILs against investigation of the deal
  • Factual errors in the supreme court judgement

Continuing with part 2,

The next controversy in the Rafale deal is its costing. As per congress spokesperson, the total cost of the old deal was INR 54,000 crores, thus the average cost of each plane comes to about 429 crores. On 13th April 2015, the then defense minister said that 126 planes will cost about Rs. 90,000 crores after including all the costs, so the average will come up to 714 crores per plane.

Moving on to new deal, The total cost of the new deal is Rs. 59,000 crores for 36 planes. This comes up to 1639 crores (approx.) per plane.  Congress raised the point that how the cost has risen to almost 130% of the old contract’s cost.

In 2016, the then defense minister said that basic cost per plane is 670 crores, but after including all other costs like weapons, maintenance etc. the cost rise up to 1639 crores per plane.

Technically, old deal had 2 components i.e. Off the shelf and Made in India, so maybe the cost per plane will vary for made in India planes. We should compare off the shelf planes only with off the shelf plane’s price. But we don’t have any information regarding the bifurcation of the off the shelf and made in India price of the plane.

Some people say that we can compare the costing with other countries’ Rafale deal as Egypt and Qatar also have purchased Rafale planes. But, in this case we don’t have access to the terms and conditions of the contract of those countries.

Now we come to the Supreme court’s judgment. 4 PILs were filed to supreme court to investigate the Rafale deal. Supreme court started the hearing on 5th September 2018 and asked central government to share the details of the deal with the Supreme court in closed envelope. On 12th November, the central government gave the supreme court the details as directed by them and on 14th December, the supreme court gave their verdict.

The Supreme court said that we have no reason to interfere in this sensitive deal. But there were some factual errors in the judgment of Supreme court which is available on the supreme court’s website.

For example, in point 25, it was written that pricing details were shared with CAG of India and the report of CAG has been examined by PAC and also it is available on the public domain. But, actually, no such details were verified by PAC and also no details are available on the public domain. This has been confirmed by PAC chairman in a press conference.

Then, the central government said that it is a typing mistake by Supreme court, it is to be written as ‘The pricing details will be shared for examination instead of have been examined’ How can it happen as there were 3 supreme court judges who examined the case?

After that, no further decision has been given by supreme court.

Share your views on this in the comments section below.

Section Editor: Pushpit Singh | 20 Apr 2020 14:02pm IST

Tags : Rafale deal, Defense, Modi, BJP, France, Reliance, Ambani, Adani

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