Rafale Deal Price: Difference Between NDA( BJP) vs UPA (congress)

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According to the 2007 deal, India was supposed to buy 126 Fighter jets but only 18 of them would be in ready to fly conditions and the other 108 India were to be made in India. 

You can read the summary of the last blog here to understand the pricing in a better way.

What happened after Modi came to power?

 In 2014, when Narendra Modi led the government, the previous Rafale jet deal was scrapped as UPA did not arrive at a final conclusion. What was the difference? 
  •  A Company to company deal was signed to avoid unnecessary wastage of time as there were already a lot of delays caused.  
  • In September 2016, India signed an intergovernmental agreement (IGA) with France. This means that there will be a direct conversation between the government's regarding the decisions on the Rafale deal of India.
  •  Modi led NDA decided to buy only 36 rafales from France, which will be imported in ready to fly conditions. The budget was finalised at 58,000 crores, and the value per plane would be 1611 crores. 
ALSO READ- 

The congress government claims that this rafale deal price is  50% higher than their price and quite expensive for 36 aircraft and that they were paying 54000 crores for 126 fighter jets, which means per aircraft price at 428 crores. This is what they called -India's Rafale deal corruption.

Rafale deal's cost structure- 

126 planes- 428 Cr (2007)
36 Planes - 1611 Cr (2016)
This is the half baked side. Don't come to a judgement by looking at these figures.
  • UPA's Rafale deal price of 428 crores is not an official one. where did this figure come from? what was its distribution?  Secondly, Dassault never agreed to this offer price because it was just an offered price, not the final cost of the deal. This is the basic aircraft value with no additional features. 
What are these additional features??

1. Which weaponry to add?
2. Technical Support
3. Training 
4. Spare part support
  • These features come into action when the aircraft deal is fixed and at times, they cost more than the basic aircraft. 
  • Again, the price disclosed by Kapil Sibal did not have any official stamps as no deal was finalised.  
Let us understand the second deal comprehensively which was set by NDA(as explained by them with additional cost details)- 


1. Training charges for Indian pilots who will be trained by Dassault.
2. Specifications included by the Indian army, according to the unique geography of India- Rafale jets, should be compatible to face the Himalayas, deserts or heavy monsoons.
3. Support system for any issues that might pop up.
4.  The deal also includes a 5-year support agreement

Naturally, when these expenses are added, the basic cost of the Rafale deal goes up. But still a hike of 1185 crore that too for one single aircraft is a big deal. So now let's validate, was it even possible to buy a rafale as per the price quoted by the congress party? (i.e 428 crores).  The answer is "a big NO". 

Apart from India, two more countries have purchased rafale. One is Egypt and the other one is Qatar. 
How much did they pay for a single rafale?  Egypt paid 210 Euros and Qatar paid  262 Euros with no special enhancement. 

Whereas India paid  218 Euros (including all the enhancements India wanted). Now looking at this figure at the world level, India's cost of Rafale deal is cheaper. A significant point can also be noted here that the price of 428 crores, claimed by congress was not possible by any chance or it might be possible that they were planning to buy the rafale jet without additional features.

PRICES NDA vs UPA

As per the audit of CAG (Comptroller and Auditor General of India), NDA settled the Rafale jet deal better than UPA at a per cent of  2.8. 

CAG shared the detailed report in the parliament which makes it obvious that -
NDA's  Rafale deal  was2.8% feasible than UPA and in addition to that, when compared with other clients at the world level  (Egypt or Qatar), India paid a better price. I would still want the readers to decide India's Rafale jet deal can be termed as corruption or propaganda?

If you like the content, do like, share and subscribe to the blog to receive notifications. Stay connected for the upcoming blogs.

STAY SAFE AND HEALTHY! 
JAI HIND!


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