Reliance has 10 per cent of offset in Rafael deal: Dassault CEO
Paris, Oct 11 : Dassault Aviation's joint venture with Reliance represents around 10 per cent of the offset investments under the Rafale jet deal, Dassault CEO Eric Trappier has said.
"We're in talks with about 100 Indian firms, including around 30 with which we've already confirmed partnerships," Trappier told AFP.
Separately on Thursday, speaking at a briefing in Paris, Defence Minister Nirmala Sitharaman reiterated the government's claim that it had no idea that Dassault Aviation would team up with Reliance Group, run by Anil Ambani.
Several reports say Dassault was forced to choose Reliance by Prime Minister Narendra Modi, despite its having almost no experience in the aviation sector.
On the eve of Sitharaman's visit, French investigative website Mediapart quoted the notes of a meeting between Dassault management and workers' representatives which described the choice of Reliance as "imperative and compulsory".
"We are very clear: With the government of France, we agreed to purchase 36 Rafale aircraft in flyaway condition," Sitharaman said.
"And in an intergovernmental agreement, there are no mentions of any individual firms," she said.
"It is more for the companies which have chosen A, B or C as their partners to answer questions if there are any," she said.
In a statement, Dassault released a transcript of what it said was Trappier's interview with AFP in which he was asked about the status of the offsets.
"Signing an offset contract is a requirement of Indian law (Defence Procurement Procedure). The implementation of offsets is an obligation and, under the Indian regulation, the choice of the partners belongs to us, Trappier was quoted as saying.
"In full compliance with this regulation, Dassault Aviation therefore decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10% of these offset obligations. We are in negotiations with about a hundred Indian companies and partnerships have already been concluded with about thirty of them," he was quoted as saying.
He said what is called offset in English is usually translated into French as compensation or contrepartie . With regard to the staff and trades unions organizations, Dassault Aviation uses the term obligation contractuelle d'offset or obligation contractuelle de compensation , he said.
Dassault negotiated for years with Hindustan Aeronautics Limited (HAL) for the order, with the jets being jointly built in India.
But those talks were cancelled after Prime Minister Narendra Modi took office, when he decided to purchase the jets directly from France.
Asked why Dassault chose Reliance over HAL as its partner, Trappier said Dassault Aviation decided to establish a long-term presence in India through DRAL, a joint enterprise in which governance is provided by an Indian Chief Executive Officer and a French Chief Operating Officer.
"Dassault Aviation therefore exercises technical and industrial control over the operations, applying its standards and its flexibility. This JV will produce parts for the Falcon 2000 and Rafale. The choice of the Nagpur site, in central India, was dictated by the availability of land with direct access to an airport runway, he was quoted as saying.
Dassault on Wednesday said it had "freely chosen" to form a joint venture with Reliance. But that stance was contradicted recently by former French president Francois Hollande, under whose watch the Rafale deal was signed.
Hollande said last month that France had "no choice" but to join with Reliance after it was pushed by the Indian government -- comments which were seized upon by Indian opposition parties.
Under Indian defence procurement rules, foreign companies winning contracts must "offset" or reinvest half the total value -- in this case around eight billion euros -- in joint ventures or purchases with Indian firms.
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.
Minister Muniyappa asks hotels to wait for a week to overcome LPG crunch
Bengaluru (PTI): Karnataka Food and Civil Supplies Minister K H Muniyappa on Wednesday said the state is facing an acute shortage of LPG cylinders for commercial use, with limited supplies forcing the government to prioritise essential sectors while asking hotels and eateries to temporarily switch to alternative arrangements.
He said the crisis has arisen due to supply constraints at the national level, with shipments stuck overseas, and that the state is making efforts to manage distribution until the situation normalises.
“We have very limited supply for restaurants, dhabas, hotels and industries, only about 1,000 cylinders. It has become very difficult to decide who should get how much from these 1,000 cylinders,” Muniyappa said in the Karnataka Legislative Council.
Citing the reason behind the shortage, he said, “The Central government is making efforts and is in constant touch with Iran. Around 16 ships are in queue and are not being released. If they are released, the situation will ease and return to normal.”
The minister said the government has urged commercial establishments to adjust operations.
“I have called a meeting of hotel owners and told them that for a week they must adjust, even if it means using electricity. This is a difficult situation, a war-like scenario, and the hoteliers should manage by using electricity for the time being,” he said.
Muniyappa said the state plans to streamline supplies by pooling available stock over a week.
“We will consolidate these 1,000 cylinders over a week and increase them to around 10,000 to 15,000 cylinders. I will call the association and discuss how to distribute them,” he said, adding that further consultations will be held next week.
Emphasising that domestic consumers remain the top priority, he said household supply will not be disrupted under any circumstances. “Priority is for domestic use. Household supply cannot be stopped at any cost. Every day, about 3,52,921 cylinders are being consumed,” he said, noting that oil marketing companies are continuing daily distribution.
The minister said the main challenge lies in commercial allocation, which has been capped by the Centre.
“The central government has allowed only 20 per cent allocation. The daily requirement for commercial cylinders is 44,000. Arrangements have been made to supply about 9,000 cylinders,” he said.
He detailed the prioritisation plan evolved in consultation with oil companies.
“We are providing 4,200 cylinders to educational institutions, student hostels, hospitals and other essential institutions,” he said.
In addition, about 1,200 cylinders are being supplied to government-run facilities and key public service points.
“For government PHU institutions, canteens located at airports, railway stations and bus stations, as well as Indira canteens, we are supplying about 1,200 cylinders as per their full requirement."
According to Muniyappa, certain sectors critical to the economy are also being supported.
“For seed processing, food processing, agriculture and allied sectors, pharmaceutical industry, fisheries, zoological parks, sports and sports hostels. Around 500 cylinders are being provided,” he said.
Responding to concerns raised by legislators, he said temporary relief measures have been extended during the ongoing Assembly session.
“As long as the Assembly session continues, we will provide about 50 per cent of their requirement. We cannot provide more than that, but considering the urgency, this arrangement has been made,” he added.
