New Delhi: The Indian government is the one that suggested Anil Ambani’s Reliance Defence as a service provider for the Rafale deal, former French president Francois Hollande has said in remarks made to Mediapart, a Paris-based investigative news website.

If Hollande’s statements are correct, it would sharply contradict the line taken by the Modi government over the 36-aircraft contract.

Senior government officials have maintained that the process of choosing Reliance Defence as an offset partner for the Rafale deal was a purely commercial decision that was driven by Dassault Aviation.

In a statement put out on Friday evening, the defence ministry said that the Mediarpart report was “being verified” and that “it is reiterated that neither GoI nor French Govt had any say in the commercial decision”.

Mediapart, which published its story on Friday on the Rafale controversy, asks Hollande about the arrangement between Dassault Aviation and Reliance.

Hollande was the French president when the intergovernmental agreement between France and India for 36 aircraft was announced by Modi in April 2015. While the story is behind a paywall in French, The Wire accessed, translated and is publishing the relevant parts below.

The interviewer asks Hollande: “How and by whom was the latter [Reliance] selected? (Comment et par qui ce dernier a-t-il été sélectionné?)”

The former president replies: “We didn’t have a word to say about that subject. The Indian government suggested this service provider and Dassault negotiated with Ambani. We didn’t have a choice, we picked the interlocutor (/contact person) which was selected for us. This is why, moreover, this group had no interest in granting me any special privileges (or thanks)”. [Emphasis added by The Wire].

The French version is:

Nous n’avions pas notre mot à dire à ce sujet. C’est le gouvernement indien qui a proposé ce groupe de service, et Dassault qui a négocié avec Ambani. Nous n’avons pas eu le choix, nous avons pris l’interlocuteur qui nous a été donné. C’est pourquoi, par ailleurs, ce groupe n’avait pas à me faire quelque grâce de quoi que ce soit. Je ne pouvais même pas imaginer qu’il y avait un quelconque lien avec un film de Julie Gayet .

One persistent strain of criticism in the Rafale controversy, over the last few months, has been the inclusion of Reliance Defence — which at the time of its selection as an offset partner was a fledgling company, having been incorporated just a little before the defence contract was announced by Prime Minister Narendra Modi in April 2015. Opposition parties like the Congress in particular have used this point to raise allegations of crony capitalism.

The decision to go with a smaller purchase and the selection of Anil Ambani’s Reliance, presumably by Dassault Aviation, has also sparked criticism because its inclusion came with the dropping of Hindustan Aeronautics Ltd (HAL) as a co-production partner for a larger 126-jet deal.

The Modi government has staunchly maintained that it had nothing to do with Dassault Aviation choosing Reliance. A month ago, finance minister Arun Jaitley specifically laid this out, noting that under the offset policy, any original equipment manufacturer can “select any number of Indian partners”.

“This has nothing to do with the Government of India and, therefore, any private industry having benefitted from the Government of India is a complete lie. Can Shri Gandhi and his Party deny this?” Jaitley said.

For her part, defence minister Nirmala Sitharaman has maintained that she doesn’t officially know who Dassault Aviation’s offset partner is. “I have not got to know who is Dassault’s offset partner… It is a commercial decision. There are laid down procedure to check the process of fulfilment of offset obligations. Neither I can accept, nor I can suggest, nor I can reject anybody from going with anybody,” she said last week.

Hollande’s new remarks, therefore, cast a shadow of doubt on this defence.

The Wire has asked Reliance Defence, Dassault Aviation and the French embassy in New Delhi for their comments and this story will be updated if and when a response is received.

Courtesy: thewire.in

Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.



Bengaluru (PTI): Karnataka government on Friday signed an MoU with Allegiance International Co Ltd of Taiwan to establish an Indo-Taiwan Industrial Technology Innovation Park (ITIP) in the state, with a proposed investment of around Rs 1,000 crore.

The MoU was signed by Rahul Sharanappa Sankanur, Director, Department of Electronics, IT, BT and Lawrence Chen, VP, Allegiance Group in the presence of Chief Minister Siddaramaiah, Minister for Electronics, IT & BT Priyank Kharge, and senior officials.

The project will be undertaken by the Allegiance Group with a proposed investment of around Rs 1,000 crore, leading to the creation of about 800 direct jobs via the companies setting up operations in ITIP over a period of 5 years, the IT&BT Minister's office said in a statement.

The ITIP will serve as a dedicated hub for Taiwanese companies in electronics and semiconductors, fostering advanced manufacturing, R&D, and innovation. This collaboration aims to strengthen Karnataka's position as India's leading destination for Electronics System Design and Manufacturing (ESDM) and accelerate the growth of the semiconductor ecosystem in the state.

Key highlights of the MoU include establishment of a world-class industrial park to house Taiwanese firms in electronics and semiconductor sectors; development of a robust supply chain ecosystem for components, PCBs, and chip design; creation of high-value jobs and skill development programmes in collaboration with academic institutions; and promotion of technology transfer and global best practices to enhance India's competitiveness in electronics manufacturing.

CM Siddaramaiah said this partnership marks a significant step towards realising Karnataka's vision of becoming a global hub for electronics and semiconductor innovation.

"The ITIP will attract cutting-edge technology and investments, creating opportunities for our youth and strengthening India's position in the global value chain," he said.

Minister Priyank Kharge said Karnataka has led India's technology revolution and continues to dominate in innovation, deep-tech talent, and semiconductor design.

"This partnership will accelerate our efforts to build a robust electronics and semiconductor ecosystem. We are committed to creating a level playing field and ensuring that Karnataka remains the preferred destination for global investors in advanced technologies," he said.

Lawrence Chen said, "We are excited to collaborate with Karnataka, a state known for its technology leadership. The ITIP will be a catalyst for Taiwanese companies to expand in India and contribute to the growth of the semiconductor and electronics ecosystem."