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CAG report on Rafale deal brings relief to Modi government

February 14, 2019

The Comptroller and Auditor General -CAG presented its report on the controversial Rafale deal in the Rajya Sabha yesterday.

The report comes as a huge relief to the ruling party BJP which has been accused of corruption in the Rafale matter.

The CAG report claims that the Rafale contract made by the current government is cheaper by 2.86% as compared to the earlier deal that was being proposed by the UPA government.

What is the Rafale Deal

The Rafale planes are multi-role fighters and useful for air-to-air and air-to-ground attack. The jets are also nuclear-capable and has sophisticated technology that can make the Indian defense fleet stronger.

UPA led government had decided to buy Rafale fighter jets from France's Dassault Rafale in 2007.

UPA government was working on a 126 aircraft deal that included, 18 fully built aircrafts and transfer of technology from Dassault for the manufacturing of 108 jets in India by the Hindustan Aeronautics Limited (HAL).

The deal did not go through and the current government signed the deal for 36 Rafale fighter jets in 2016.

36 Dassault Rafale twin-engine fighters will be bought by India at a price of 58,000 crore or 7.8 billion Euros.

Congress led opposition parties raised objection to the deal and claimed that the NDA deal was not beneficial for the country. BJP was accused of agreeing to buy the jets at a higher price than what was earlier discussed.

Congress has been forcing the BJP to disclose the pricing details, but, the government refused to comply citing national security concerns.

The auditor report however, claims that PM Modi's deal is cheaper by 2.86% as compared to the buying price that was being planned earlier.

Modi supporters are happy about the result of the audit by CAG.

Krishna Vinod‏ @CAKrishnaVinod tweeted,"Replying to @zules7172 CAG report didn't consider the inflation aspect of it. If you include it, the savings would be more. Trust you know the basics of inflation based pricing movement."

Lokesh Rathi‏ @lokesh_rathi wrote,"Replying to @zules7172 This include one time cost as well for building maintainance infra in india.Still it's cheaper 3 approx percent...Kudos to present govt. 9% on basic ,20% on loaded aircraft. Gobar on whose menu...?"

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