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.




Posted by Jawwad Kazi on 8th Feb 2019