Reliance Defence was 'freely chosen' as offset partner: Dassault Aviation
NEW DELHI: Dassault Aviation, the maker of Rafale fighter jets, said on Wednesday night that it had "freely chosen to make a partnership with India's Reliance Group". The Rafale-maker's clarification came in response to a French media website claim that Dassault Aviation was presented with no option but to tie up with Anil Ambani-led Reliance Defence as the main offsets partner in the Rs 59,000-crore contract for 36 jets.
"Within the framework of the September 2016 Inter-Government Agreement between France and India, Dassault Aviation has sold 36 Rafale aircraft to India. In compliance with the Indian regulations (Defence Procurement Procedure) and as frequent with such a contract, Dassault Aviation has committed to offsets in India worth 50% of the value of the purchase.
In order to deliver some of these offsets, Dassault Aviation has decided to create a joint-venture. Dassault Aviation has freely chosen to make a partnership with India's Reliance Group. This joint-venture, Dassault Reliance Aerospace Ltd (DRAL), was created February 10, 2017," Dassault said in a press release.
"Other partnerships have been signed with other companies such as BTSL, DEFSYS, Kinetic, Mahindra, Maini, SAMTEL,… Other negotiations are ongoing with a hundred-odd other potential partners," the statement added.
French investigative website Mediapart, which last month quoted former French President François Hollande as claiming the Indian government had virtually thrust Reliance Defence as offsets partner on France, on Wednesday said it had a Dassault document proving the same.
The report came even as defence minister Nirmala Sitharaman left for a three-day visit to France on Wednesday night. Mediapart claimed the document showed the alliance with Reliance Defence was indeed presented as "a trade-off" to obtain the contract, quoting a presentation made by Dassault's deputy chief executive officer Loik Segalen to the company's staff representatives in Nagpur.
The partnership with Reliance Defence was described as "imperative and mandatory", as per the report. The French government and Dassault promptly rebutted Hollande's claim last month. The Indian defence ministry, too, dismissed the controversy as "unnecessary", maintaining it had never suggested any company's name as the offsets partner in the deal.
Under the contract, the French companies involved must plough back 50% of the contract value to India as offsets or re-investments. The MoD says, "As per offsets guidelines, the vendor (Dassault) is to provide the details of the offset partners either at the time of seeking offset credits or one year prior to discharge of offset obligations, which in this case will be due from 2020."
The French government said it was "in no manner involved" in the choice of Indian industrial partners which have been, or are being, selected by the French companies involved in the deal.
"French companies have the full freedom to choose the Indian partner companies that they consider to be the most relevant, and then present for the Indian government's approval the offsets projects that they wish to execute with their local partners," it said.
Courtesy: timesofindia
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Silver jumps Rs 5,000 to hit fresh peak of Rs 2.56 lakh per kg in Delhi markets
New Delhi (PTI): Silver prices surged by Rs 5,000 to hit a new record of Rs 2,56,000 per kilogram in the national capital on Wednesday, amid strong safe-haven demand and robust industrial buying, according to the All India Sarafa Association.
The white metal closed at Rs 2,51,000 per kilogram on Tuesday.
Traders said that escalating tensions between the US and Venezuela have boosted safe-haven appeal, while supply-side constraints and strong industrial usage further amplified the silver prices.
"Silver prices were also driven by sustained buying by the investors and China's export curbs on silver that came into effect from January 1," an expert said.
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Meanwhile, the price of gold of 99.9 per cent purity slipped marginally by Rs 100 to Rs 1,41,400 per 10 grams (inclusive of all taxes), compared to the previous close of Rs 1,41,500 per 10 grams.
"Gold prices experienced a slight decline on Wednesday as investors took profits following a recent rally," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
He added that a recovery in the US dollar also weighed on gold prices, though persistent geopolitical risks continue to support safe-haven demand for precious metals, which is limiting sharp downside.
In the international market, spot gold fell by USD 45.22, or 1.01 per cent, to USD 4,449.87 per ounce.
Spot silver was trading lower by USD 2.55, or 3.15 per cent, to USD 78.69 per ounce. During the session, the white metal climbed by USD 1.45, or 1.8 per cent, to hit an intraday high of USD 82.75 per ounce in the overseas trade.
Renisha Chainani, Head - Research at Augmont, said, "We could see some profit booking from here, but when it breaks the previous top again, the next level to watch for is USD 84 (Rs 2,66,000 per kg) and USD 88.5 (Rs 2,80,000 per kg)."
