4 India specific enhancements in Rafale deal that were 'not required': CAG
The Indian Air Force proposed to reduce six India-specific enhancements in the Rafale jet under the new deal, but the Ministry of Defence overruled the decision, the CAG has observed. The CAG also pointed out that there were four India-specific enhancements (ISEs) in the new deal that were "not required".
During the negotiation of 36 aircraft in 2015, the Indian Negotiation Team headed by Deputy Chief of Air Staff (DCAS) proposed to reduce the number of ISE. This was proposed in view of the "huge cost and reduced number of aircraft", the CAG observed. But Dassault Aviation stated that since its price was a total package, the Ministry of Defence would have to take up the matter with the French government.
The DCAS also intimated the MoD that ISE scope could be "reduced by postponing six enhancements", which could be included if more Rafale aircraft are procured in future. "However, this proposal was not accepted by MoD because that was tantamount to dilution of ASQRs (Air Staff Qualitative Requirements) which was not in consonance with the basic framework provided by the joint statement of 10 April 2015 by the Defence Acquisition Council that aircraft must have same configuration (the one decided in the 2007 deal negotiated by the UPA)," the report said.
Overall, the ISE was 17.08 per cent cheaper. However, the CAG observed, four ISEs were not required. "Audit noted that four of these enhancements were stated not to be required in the technical and staff evaluations. The cost of these four enhancements items was "IS4" (price withheld) ME (million euros) constituting 14 per cent of the ISE contracted cost," the report said.
(With inputs from agencies.)
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