Private Sector

CAG pulls up Dassault, MBDA for not fulfilling offset obligations under Rafale deal

False start
French aerospace major Dassault Aviation and European missile maker MBDA are yet to fulfil their offset obligations of offering high technology to India under the Rafale aircraft deal, the Comptroller and Auditor General said in a report released on Wednesday.

The Dassault Aviation is the manufacturer of the Rafale jets while MBDA supplied the missile systems for the aircraft.

No technology transfer
India had signed an inter-governmental agreement with France in September 2016 to procure 36 Rafale jets at a cost of Rs 59,000 crore, and the offset obligations were part of the contract.

In its report tabled in Parliament, the national auditor said the Dassault Aviation and the MBDA proposed in September 2015 to discharge 30 per cent of their offset obligations by offering high technology to DRDO, but the two firms are yet to do it.

Snubbing indigenization
The DRDO was looking for French technology for indigenous development of an engine for the Light Combat Aircraft Tejas.

The CAG also painted a grim picture of the efficacy of India’s offset policy saying it did not find a single case of foreign vendors transferring high technology to the Indian industry, adding the defence sector ranked 62nd out of 63 sectors receiving FDI.

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