The Congress Might Not Want To Know, But Modi Government Saved Over Rs 12,600 Crore In Rafale Deal

Prime Minister Narendra Modi’s government saved over Rs 12,600 crore in a deal signed with France for the purchase of 36 Rafale fighter jets in a flyaway condition, the Times of India has reported. The cost of the jets, compared with terms that were being considered by the Congress-led United Progressive Alliance (UPA) government, was significantly lower, the report said.

Under the reworked contract for the purchase of the jets in a flyaway condition, the government was able to bring down the cost of the aircraft to around $90 million each. In comparison, each of the first 18 fighters would have cost the UPA government over $100 million. The Modi government also negotiated the purchase of weapons package for the 36 fighters, which added to the cost.

The Modi government was also successful in capping the annual inflation rate of the cost of the jets at 3.5 percent against the 3.9 per cent rate that was on offer during the UPA rule. “This ensures an additional saving of around 200 million while it could add up to around 1 billion euros,” the report read.

The Congress has accused the government of buying the jets at an inflated price and tweaking the agreement to favour a particular business house. However, many have questioned the motives of the Congress as it has levelled these allegations a year after the deal was signed and just before elections in Gujarat.

The government has refuted the claims made by the opposition party. The Indian Air Force has also rebutted the Congress’ charge of overpricing in the deal.

Rahul Gandhi’s hope of stirring up a controversy on the deal in view of the upcoming assembly polls was dashed by Air Chief B S Dhanoa last week. The Air Chief said there was "no overpricing" in the purchase of the fighter jets and that the government had "negotiated a very good deal” for the 36 aircraft.