After former French president Francois Hollande's disclosure, Dassault Aviation issues statement on contract with Reliance Group; Indian government says it had 'no role' in selection
CEO of Dassault Aviation Eric Trappier, French Defence Minister Florence Parly and chairman of Reliance Group Anil Ambani at the stone-laying ceremony of Dassault Reliance Aerospace Ltd last year. File pic/AFP
Confirming the Indian government's stand on the offsets agreement between Dassault Aviation and Reliance Group, the former, in a statement clarified that Reliance Group was chosen in compliance with the Defence Procurement Procedure (DPP) 2016 regulations.
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It further said that although the Rafale deal was a contract between the Indian and the French governments, it provided for a separate contract in which Dassault Aviation committed to making compensation investments (offsets) in India equivalent to 50 per cent of the value of the purchase. "This offsets contract is delivered in compliance with the Defence Procurement Procedure (DPP) 2016 regulations.
In this framework, and in accordance with the policy of Make in India, Dassault Aviation has decided to make a partnership with India's Reliance Group. This is Dassault Aviation's choice...," the company stated.
The French aviation company also said that contracts were signed with companies other than Reliance as well, as part of the offsets contract under the Rafale deal. The development comes after a French media report quoted former French President Francois Hollande as purportedly saying that the Indian government proposed Reliance Defence as the partner for Dassault Aviation in the R58,000 crore Rafale jet fighter deal and France did not have a choice.
Meanwhile, the Ministry of Defence on Saturday said it had "no role" in the selection. "The Government has stated earlier and again reiterates that it had no role in the selection of Reliance Defence as the Offset partner," the MoD said in a press release.
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