Minister of National Defense Nirmala Sitharaman Refuses President Rafale's Claims During Visit to France


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The Indian Defense Minister was faced with new questions on Thursday about a contract to buy Rafale fighter aircraft to France in 2016, which would have unfairly benefited the country. 39, one of the main supporters of Prime Minister Narendra Modi.

At a meeting in Paris, Nirmala Sitharaman reiterated the government's assertion that he did not know at all that jet builder, Dassault Aviation, would team up with the Reliance group, led by Anil Ambani.

Several reports indicate that Dassault was forced to choose Reliance from Modi, whereas he had virtually no experience in the aviation industry.

On the eve of Sitharaman's visit, Mediapart quoted notes from a meeting between Dassault management and workers' representatives that Reliance's choice was "imperative and mandatory."

"We are very clear: with the French government, we agreed to buy 36 Rafale aircraft in the state of flight," Sitharaman said.

"And in an intergovernmental agreement, no single business is mentioned," she said.

Urged to decide whether India would go ahead with the agreement in the midst of a group of claims and complaints of "crony capitalism" filed by Indian anti-corruption groups, the minister has adopted a more combative tone .

"It's more for companies that have chosen A, B or C as partners to answer any questions," she said.

Dassault challenged the Mediapart report Wednesday, saying he had "freely chosen" to form a joint venture with Reliance.

But this position was recently contradicted by former French President Francois Hollande, under whose supervision the Rafale agreement was signed.

Hollande said last month that France had "no other choice" than to join Reliance after the Indian government pushed it – comments that were seized by the parties Indian opposition.

Under Indian rules for the purchase of defense equipment, foreign firms that obtain contracts must "offset" or reinvest half of the total value – in this case about 8 billion euros – in joint ventures or purchases with Indian companies.

Eric Trappier, CEO of Dassault Aviation, told AFP that a joint plant with Reliance in the city of Nagpur, in central India, accounted for "about 10%" of the roughly 4 billion euros in offset investments.

"We are in talks with a hundred Indian companies, including thirty with whom we have already confirmed partnerships," he said.

Dassault has traded for years with the Indian company Hindustan Aeronautics Limited (HAL) for the order, the jets being built jointly in India.

But these discussions were canceled after the entry into function of Modi, when he decided to buy the jets directly to France.

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