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1) Explain the main issues involved in Rafale deal controversy and discuss CAG’s report in this regard?(250 words)

Topic– Important aspects of governance, transparency and accountability

1) Explain the main issues involved in Rafale deal controversy and discuss CAG’s report in this regard?(250 words)

Reference

Economictimes

Why this question

The controversy over Rafale deal has become a major talking point in newsroom debates and oped pages. It is important to understand the issues involved as well as the details of cag report on the deal.

Key demand of the question

The question expects us to highlight the main points of controversy in the Rafale deal. Thereafter, it expects is to discuss the content of CAG’s report and debate it. Finally we need to provide a fair and balanced opinion and discuss the way forward.

Directive word

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer

Introduction – Explain about the deal and highlight the incessant noise surrounding the deal.

Body

  • Discuss the main reasons why the deal is controversial
    • cost breakdown of Rafale in the original bid under UPA and in the 36 aircraft in the government-to-government deal under NDA are not in the public domain.
    • There was no agreement on the terms of Technology Transfer previously. What was on offer was just Licence Manufacturing technology. Under the current agreement, the 36 Rafale procurement offset proposal supports the ‘Make In India’ initiative of the Indian Government through Article 12 of the IGA. It states that the French Party will facilitate the implementation of ‘Make In India’ by the industrial supplier notably through offsets for 50% value of the supply protocol. Overlooking HAL for a private company appears controversial to some
    • India has managed to negotiate the acquisition of the latest weapons package for the Rafale. These are the new weapons, beyond the standard package such as SCALP and METEOR
  • highlight the details of CAG report
    • CAG found the 2016 deal to be 2.86 per cent cheaper than the deal negotiated by the UPA
    • present government has left a five-squadron gap in India’s defence preparedness, with no arrangement for five out of the seven squadrons, each of 18 Medium Multi Role Combat Aircraft, that the Air Force needs and began the process of procuring in 2001.
  • Give your view on the cost calculation, examine whether such secrecy in public procurement is justified etc

Conclusion – Give your view and discuss way forward.

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