Indian government had no say in choice of private partner in Rafale deal: Defence Ministry
New Delhi, Sep 22: The Defence Ministry on Saturday said the Indian government had no role in the selection of an Indian private firm as the offset partner of the French firm Dassault Aviation as it was a commercial decision of the Original Equipment Manufacturer (OEM) which was taken as early as 2012 when the UPA was in power.
Reacting to the raging controversy over the deal, a Defence Ministry spokesperson said that unnecessary controversies were being sought to be created following media reports on a statement purportedly made by the former French President Francois Hollande, concerning the selection of Reliance Defence as the offset partner by Dassault.
The statement by the Ministry of Defence comes amid media reports of the former French President claiming that the Indian government suggested the private firm for the Rafale offset contract.
Hollande was quoted in an article by a French website as claiming that the Indian government had asked the French government to nominate Reliance Defence as its India partner in the deal. "We did not have a say in this. The Indian government proposed this service group and Dassault negotiated with Ambani."
The Defence Ministry said that the reported statement by the former President perhaps needs to be seen in its "full context" - where the French media has raised "issues of conflict of interest involving persons close to the former President". "His subsequent statements are also relevant in this regard," it said.
The defence ministry statement said "The government has stated earlier and again reiterates that it had no role in the selection of Reliance Defence as the Offset partner."
It also said that it has been reported that a joint venture between Reliance Defence and Dassault Aviation came into being in February, 2017.
"This is a purely commercial arrangement between two private companies. Incidentally, media reports of February, 2012 suggest that Dassault Aviation, within two weeks of being declared the lowest bidder for procurement of 126 aircraft by the previous government, had entered into a pact for partnership with Reliance Industries in Defence sector," it said.
The ministry said that Dassault Aviation has also issued a release stating that it has signed partnership agreements with several companies and is negotiating with a hundred odd other companies.
"As per the guidelines, the vendor is to provide the details of the offset partners either at the time of seeking offset credit or one year prior to discharge of offset obligation, which in this case will be due from 2020," the ministry said.
The deal to purchase 36 Rafale fighter jets from France was announced by Prime Minister Narendra Modi in 2015 and signed in 2016.
The UPA government was earlier negotiating a deal to procure 126 Rafale jets, with 18 to come in flyaway condition and 108 to be manufactured by HAL under licence.
The Modi government has repeatedly said it was Dassault that chose its India partner for offsets and that the government had no say in the deal.
Explaining how the Offset Policy came into play, the ministry said "The Offset Policy was formally announced for the first time in 2005 and has been revised several times. To leverage its huge arm-imports in order to develop a strong indigenous industry, a flow-back arrangement is made in the defence contracts, which is widely known as offsets, and constitutes a certain percentage of the contract value.
"The key objectives of the Defence Offset Policy is to leverage the capital acquisitions to develop Indian defence industry by fostering development of internationally competitive enterprises; augmenting capacity for research and development in defence sector and to encourage development of synergistic sector like civil aerospace and internal security."
The offset can be discharged by many means such as direct purchase of eligible products/services, FDI in joint ventures and investment towards equipment and transfer of technology.
As per Defence Offset Guidelines, the foreign OEM is free to select any Indian company as its offset partner.
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Jamshedpur man among crew of LPG vessel back from West Asia, family heaves sigh of relief
Jamshedpur (PTI): A family in Jharkhand's Jamshedpur heaved a sigh of relief after learning that the Indian-flagged LPG vessel Shivalik, on which their son was working, had safely reached Gujarat's Mundra port after crossing the Strait of Hormuz amid the conflict in West Asia.
Mithilesh Tripathy said his only son, Ansh Tripathy, who serves as the second engineer on the vessel, was responsible for monitoring the ship's technical operations during the journey through the strategically crucial maritime corridor.
Tripathy said he last spoke to his son over a WhatsApp call about four to five days ago, when the vessel was leaving Qatar.
"They were instructed to maintain a safe distance from the Strait of Hormuz until they received the green signal from headquarters. The Indian government was negotiating with Iranian authorities to ensure safe passage," Tripathy told PTI.
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A former flight engineer with the Indian Air Force, Tripathy later worked at Uranium Corporation of India in Jadugora near Jamshedpur. He now lives in a residential society near Pardih in the city.
Speaking about his son, Tripathy said Ansh completed his schooling in Jamshedpur and Jadugora, pursued mechanical engineering at BIT, and later graduated as a marine engineer from Kochi. He joined the Shipping Corporation of India around 2014-15.
"Before leaving Qatar, Ansh told me they were heading towards the Indian Ocean. That was all he said," he added, noting that he did not discuss the number of crew members on board.
Tripathy said the family remained anxious after hearing about the war in West Asia.
"We were extremely worried about Ansh and the crew members since the war broke out in the region. We were glued to the TV for updates," he said, expressing relief after hearing that the ship had reached Mundra port safely.
"It was a very painful time, but we were confident that if my son and the crew returned safely, it would be due to the efforts of PM Narendra Modi and External Affairs Minister S Jaishankar," he said.
Tripathy said that while people may hold different views about the tensions in West Asia, his experience in the Air Force helped him understand the realities of operating in a conflict zone.
Two Indian-flagged LPG carriers, Shivalik and Nanda Devi, with 92,712 metric tonnes of LPG, crossed the Strait of Hormuz early on Saturday following negotiations between India and Iran.
Shivalik arrived at the Mundra Port on Monday with 46,000 metric tonnes of LPG ordered by Indian Oil Corp Ltd, officials said.
While 20,000 MT will be unloaded at Mundra, 26,000 MT will be unloaded at Mangaluru, they said.
Nanda Devi is scheduled to reach Gujarat's Kandla port on Tuesday, they added.
These two ships were among the 24 ships stranded on the west side of the strait since the war broke out in the region.
Besides the 24 on the west side of the strait, four others were stranded on the east side.
India imports about 88 per cent of its crude oil, 50 per cent of its natural gas and 60 per cent of its LPG needs. Before the US-Israel strikes on Iran on February 28 and Tehran's retaliation, more than half of India's crude imports, about 30 per cent of gas and 85-90 per cent of LPG imports came from West Asian countries such as Saudi Arabia and the UAE.
The conflict has led to a blockade of the Strait of Hormuz, the main transit route for Gulf energy supplies.
