MoD protested against PMO undermining Rafale negotiations
Why in news?
- In the negotiations over the controversial €7.87 billion Rafale deal between India and France, the Defence Ministry raised strong objections to parallel negotiations conducted by the Prime Minister’s Office (PMO) with the French side.
- Stating that such parallel discussions by the PMO had weakened the negotiating position of MoD and Indian Negotiating Team.
More about the news
Advise by MoD to PMO:
- MoD advise PMO that any Officers who are not part of Indian Negotiating Team may refrain from having parallel parlays with the officers of French Government.
- It suggested that in case the PMO is not confident about the outcome of negotiations being carried out by the MoD, a revised modality of negotiations to be led by PMO at appropriate level may be adopted in the case.
Government’s submission to the Supreme Court of India:
- Negotiations over the Rafale deal were conducted by a seven-member team headed by the Deputy Chief of Air Staff.
- There was no mention of any role for the PMO in these negotiations.
About the Rafale deal:
- Original deal was announced in Paris by PM Modi in April 2015.
- Followed by the signing of a MoU when French President Francois Hollande visited New Delhi at the occasion of the Republic Day in 2016.
- Inter-governmental agreement for 36 Rafale fighter jets was eventually signed on September 23, 2016.
Detrimental to interests:
- Such parallel negotiations may be detrimental to our interests.
- French side may take advantage of same by interpreting such discussions to their benefit and weakening the position taken by Indian Negotiating Team.
Contradictions among the negotiations:
- Defence Ministry note pointed out that outcome of discussions between Diplomatic Adviser to the French Defence Minister and PMO that:(1) No Bank Guarantee is provisioned in the supply protocol.(2) Letter of comfort provides assurances of the proper implementation of the supply protocol by the industrial suppliers.
- This is contrary to the position taken by the MoD that the commercial offer should be preferably backed by Government Guarantee or by Bank Guarantee.
Source
The Hindu.