France has rejected the Congress party's allegation that the Narendra Modi government has negotiated an overpriced deal with French company Dassault Aviation to supply the Indian Air Force with 36 state-of-the-art Rafale fighter jets, while the Anil Ambani-led Reliance Defence Limited has threatened to sue the opposition party if it does not retract its charge that it was unfairly picked to be the French firm's Indian partner. The first Rafale jets are to be inducted into the Indian Air Force from 2019 onwards.
1.This fighter jet has been selected for its outstanding performance and competitive price. It was selected through a fully transparent and competitive process," French diplomatic sources said today, describing the Congress' allegations as "a domestic political matter" that they would not like to enter
2.The Congress alleged on Tuesday that Prime Minister Narendra Modi's government has caused the exchequer an "insurmountable loss" by signing the deal for 36 Rafale aircraft from France for Rs 58,000 crore (7.8 billion Euros). The opposition party has said that the cost of each aircraft is three times more than the price negotiated with France by the previous Congress-led UPA government in 2012.
3.The Congress has also accused the government of "crony capitalism" by promoting "the interests of one industrial group, i.e Reliance Defence Limited, which has led to the company tying up and entering into a joint venture with Dassault Aviation worth Rs 30,000 crores?"
4.Reliance Defence today warned of legal action against the Congress if it does not withdraw the allegations. "Government policy issued on 24 June 2016 allows for 49% FDI in the Defence Sector under the automatic route, without any prior approval. No approvals from the Union Cabinet or CCS were required for the formation of the aforesaid Joint Venture company under the automatic route," the company said in a statement.
5.The BJP has called the Congress allegations a "stunt" to deflect attention from the prospect of its top leaders, including the Gandhis, being questioned in the AgustaWestland VVIP chopper scam.