New Delhi(PTI): The defence ministry has imposed a fine of less than 1 million euros on European missile maker MBDA for delay in fulfilling its offset obligations under the Rafale aircraft deal, sources said on Wednesday.

French aerospace major Dassault Aviation is the manufacturer of the Rafale jets while MBDA supplies the missile systems for the aircraft.

India had signed an inter-governmental agreement with France in September 2016 to procure 36 Rafale jets at a cost of Rs 59,000 crore, and the offset obligations were part of the contract.

As a part of the deal, 50 per cent of the total contract value has to be reinvested in India as offsets in each year between September 2019 and September 2022.

The sources said the defence ministry has imposed and collected a fine of less than 1 million euros from MBDA for delaying its offset obligations for the September 2019-September 2020 period.

MBDA has deposited its penalty but has also lodged its protest with the defence ministry, they said. MBDA did not respond to PTI's request for a statement on this matter.

The first batch of Rafale fighter aircraft came to India in July last year.

The CAG had in September last year said that Dassault Aviation and MBDA are yet to fulfil their offset obligations of offering high technology to India under the Rafale aircraft deal, according to the Comptroller and Auditor General's report released on Wednesday.

In its report tabled in Parliament, the national auditor had said that Dassault Aviation and MBDA proposed in September 2015 to discharge 30 per cent of their offset obligations by offering high technology to the Defence Research and Development Organisation (DRDO), but the two firms were yet to do it.

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: Leader of the Opposition R. Ashoka launched a scathing attack on MLC Dr. Yathindra, demanding that he retract his controversial statement comparing Chief Minister Siddaramaiah to the late Maharaja Nalwadi Krishnaraja Wadiyar. Ashoka urged Yathindra to apologize to the people of Karnataka if he had even a shred of conscience and any respect for the Mysuru royal lineage.

In a strongly worded social media post on Sunday, Ashoka stated, “Comparing Siddaramaiah to Nalwadi Krishnaraja Wadiyar is nothing short of absurd. Where is Nalwadi, who was bestowed the title of ‘Rajarshi’ by Mahatma Gandhi himself, and where is Siddaramaiah, who has stooped to being a puppet in the hands of fake Gandhis for the sake of power?”

He continued his critique by contrasting the enduring legacy of Nalwadi, remembered fondly by Kannadigas for his people-centric development, with what he termed as Siddaramaiah’s failure to manage Karnataka’s economy, burdening every household with debt.

Ashoka highlighted several stark differences, while Nalwadi built Mysore University over a century ago, Siddaramaiah is shutting down nine universities due to lack of funds. Nalwadi famously sold his family’s gold to build the KRS dam, whereas Siddaramaiah is accused of grabbing 14 sites meant for the public. Nalwadi established Bhadravati Iron & Steel Plant, Sandalwood Soap Factory, and Mysore Paper Mills. In contrast, Ashoka claimed Siddaramaiah's governance drove away industries, investors, and entrepreneurs. Nalwadi pioneered reservations for the backward classes long before it became mainstream. Siddaramaiah, Ashoka alleged, is reducing social justice to a gimmick by sticking labels on doors in the name of surveys.

While acknowledging Yathindra’s emotional attachment to his father, Ashoka emphasized that comparing Siddaramaiah to a visionary like Nalwadi was “laughable, baseless, and a gross insult” to the late king.

In his concluding remarks, Ashoka slammed the government for ignoring farmers’ needs despite an early monsoon. He accused the administration of being caught up in internal power struggles and negligence, forcing farmers into despair. “This government will not be spared from the curse of the farmers,” he warned.

Get all the latest, breaking news from Karnataka in a single click. CLICK HERE to get all the latest news from Karnataka.