Two weeks after joining the Indian Air Force, Rafale fighter aircraft company Dassault Aviation is once again in the news. The Comptroller and Auditor General (CAG) has objected to the issue of not transferring high technology to the Defense and Research Research Organization on behalf of the French company.
CAG has pulled up French manufacturer Dassault Aviation and MBDA, according to India Today news. The CAG states that Dassault Aviation and MBDA have not fulfilled the offset obligations involved in the Rs 60,000 crore deal. It is because of this that the company did not transfer high technology to the Defense and Research Organization to manufacture indigenous Cauvery jet engines. A commitment was expressed in 2015 in this regard.
In a report on defense offset in Parliament on Wednesday, the CAG reported that Dassault and MBDA were committed to supply contracts as foreign vendors but did not fulfill their obligations. The statement said that in many cases it has been observed that foreign vendors make various offset commitments to get the main supply contract but later they do not fulfill these commitments.
The CAG stated, “For example, in an offset contract relating to 36 medium multi-role combat aircraft (MMRCA), vendors Dassault Aviation and MBDA initially (September 2015) proposed to discharge their 30% offset liability. DRDO was offered high technology.
DRDO wanted to get technical support for the indigenous development of engines (Kaveri) for light combat aircraft. To date, the seller has not confirmed the transfer of this technology. “Rafale deal is India’s largest defense procurement. It includes a clause stating that 50 percent of the total amount of the transaction is to be invested back into India as offset obligations.