Thread by @t_d_h_nair

1/ India's renegotiated Rafale fighter jet deal is a mega mystery. It is the biggest ever single defence purchase deal in India. #Thread

2/After a tight competition between Eurofighter (AEDS) and Rafale (Dassault Aviation)Rafale won as the lowest bidder telegraph.co.uk/finance/newsby…

3/ IAF extensively tested different products from different Medium Multi Role Combat Aircrafts (MMRCA) manufacturers +

4/ including American F-16 and F-18, Russian MiG 35, Swedish Saab Gripen along with Eurofighter Typhoon and French Dassault Rafale +

5/ In different parts of the world to understand the reliability and operational feasibility in different climatic and geographical +

6/ conditions for 4 yrs before finalising Eurofighter and Rafale for the financial bidding and in 2012 Rafale won as the lowest bidder +

7/ as their product cycle maintenance cost was lower.

7/In 2005, The then Government (UPA I) introduced an offset policy in defence procurement above ₹300 crore
mod.nic.in/defence-procur…

8/ Over the years, DPP had changed / upgraded many times.
pib.nic.in/newsite/PrintR…

9/ Read this piece to understand what is an offset policy in simple words
indianeconomy.net/splclassroom/1…

10/In 2016, Modi Govt raised the Offset policy base limit from ₹300 crore to ₹2000 crore and some changes stands out
economictimes.indiatimes.com/news/defence/c…

12/ These technicalities are explained here because all these are related to the main topic we are discussing

13/ Once the L1 bidder's name was announced, in 2012 TDP R S MP Mysura Reddy alleged the bidding process was rigged
rediff.com/news/interview…

14/ The then Defence Minister Mr. A K Antony announced an investigation which delayed the negotiations n process
deccanherald.com/content/238253…

15/ The investigation found nothing wrong in the process and the price negotiations restarted

16/ Financially Dassault Avaition was in bad shape and Rafale didn't hv any other takers. India was negotiating hard
defenceforumindia.com/forum/threads/…

17/ Process stalled.India didn't agree to the price and wanted Dassault guarantee for 108 aircrafts assembled in HAL
web.archive.org/web/2013040723…

18/ As Dassault Aviation was financially in bad shape, they had to agree to India's T&C and they did in March 2014
ndtv.com/india-news/a-b…

19/ Just 2 weeks after Dassault become the L1 bidder, Reliance Industries signed a pact with Dassault Aviation
livemint.com/Companies/JZbw…

20/ 2014 was an election year. In May that year new BJP government under Mr. Narendra Modi came in to power

21/ In November 2014 French Defence Minister visited India and both countries decided close the deal ASAP
wayback.archive-it.org/all/2014120410…

22/ In Feb 2015, Defence Minister M Parrikar said govt is waiting for the report of Commercial Negotiation Committee businesstoday.in/current/econom…

23/April '15 Modi announced in France India wl buy 36 Rafale in flyaway condition with same configuration IAF wanted
hindustantimes.com/india/modi-in-…

24/ In August 2014, Govt increased the FDI cap in defence sector from the then existing 26% to 49%. businesstoday.in/current/policy…

25/ Exactly 2 months before PM's announcement of direct purchase of Rafael, Anil Ambani entered defence sector thehindu.com/business/Indus…

26/ In January 2014 India was expecting to close the deal with Dassault for approx $13 billion for 126 jets
reuters.com/article/india-…

27/ 3 days after Modi's announcement, Defence expert Ajai Shukla wrote this detailed piece- Modi's Parisian Blunder rediff.com/news/report/de…

28/On July 30 2015 Defence Minister Parrikar informed Rajya Sabha that the Rafale deal for 126 jets is called off economictimes.indiatimes.com/news/defence/g…

29/ But the real game started early in 2014. France got the wind that Congress will not be coming back in power dnaindia.com/india/report-d…

30/ Defence Analyst D Raghunath explains what r the differences between the original contract and new deal in detail
newsclick.in/rafale-jet-dea…

31/In simple words, a 126 aircraft deal which included technology transfer to an Indian PSU for a price of $18 billion was derailed by Modi

32/ Think urself. $8.9 billion for 36 jets with just 5 yr maintenance and $18-$20 billion for 126 jets with 40 yr maintenance

33/ If India's depleting Air superiority was the issue, instead of going to one company (Dassault here) India could have negotiated +

34/ For Eurofighter Typhoon too as IAF finalised Rafale only on the basis of financial L1 bidding and that advantage was no longer there.

35/ SAAB announced They are ready to relocate the complete production ecosystem from Sweden to India for Gripen
thehindubusinessline.com/companies/will…

36/ Lockheed Martin Said they are ready to relocate their lone F16 production facility completely to india from US indianexpress.com/article/busine…

37/ Still Modi went ahead with a company which was not ready to Transfer the Technology to HIndustan Aeronautics Ltd (HAL)

38/ Why Did Modi announced the decision to Buy Rafale hurriedly before even discussing the final details with the FM and then DM?

39/ Why other players who were ready for 100% ToT not considered? At least Eurofighter Typhoon shd have been in the race

40/ Now the real reason for Modi's hurry and unilateral decision comes. In South Asia Defence & Strategic Review+
defstrat.com/rafale-hits-an…

41/ Air Marshal Anil Chopra PVSM AVSM VM VSM (Retd) explained it in detail

42/ Modi couldn't afford to go the technology to HAL. Because, RIL already signed the pact with Dassault Aviation long back

43/Dassault CEO who had doubted HAL's capability reportedly said Govt informed him HAL is Fully booked! indiatimes.com/news/india/if-…

44/Remember, ToT and warranty till the end of life cycle were major reasons for India to negotiate the deal for too long and that's gone now

45/ Meanwhile, Reliance Aerospace and Dassault signed a JV and decided to manufacture combat aircrafts in India
economictimes.indiatimes.com/news/defence/d…

46/ Once India signed the contract with Dassault, Reliance Dassault JV immediately bagged the offset contract. projectstoday.com/News/Decks-cle…

47/ The same JV will make aircraft spare parts in the first phase and will start to manufacture Dassault Aircrafts in the second phase

48/ No, That is not the end. Reliance will make missiles for Indian Air Force!
economictimes.indiatimes.com/news/defence/r…

49/ Let us come back to the investments of the offset amount from Rafale deal. 50% of the total value is approx ₹ 30,000 cr

50/ As per reports, Reliance Bagged ₹21000 cr out of ₹30,000 crore thehindubusinessline.com/companies/reli…

51/ Now, let us check What is the value of the actual investments by Reliance Dassault JV in India.
thehindu.com/business/defen…

52/,If the offset amount is ₹30,000 crore, Reliance is Investing ₹6,500 cr and Dassault ₹200 crore?
thehindubusinessline.com/news/national/…

53/ Why such secrecy in a Mega Investment plan under Make in India? What is the time frame for Dassault to Invest the complete amount?

54/ But, here is the truth which most of our MSM ddnt say. Reliance will be earning €1.9 billion from this deal!
ft.com/content/fb8425…

55/ That is approx ₹ 1,42,97,50,00,000. Nothing Much. Right? :)

56/ Why Modi was in a hurry. who is getting benefitted? Is he our PM or a corporate business development Manager?

I don't know the answer..

Subramanian Swamy threatened to file a PIL alleging
Suspicion in the deal. He slept after that
indianexpress.com/article/india/…

58/Many Bhakts are adamant that UPA negotiated deal was for "Bare Bone" and Modi's higher priced deal is with full spec. That is an utterly+

59/ misleading and Sanghi fabricated Propaganda. The deal was negotiated as per IAF required specifications. livemint.com/Politics/j2pvz…