Congress leader P. Chidambaram on Thursday took a jibe at the Central government in reference to the Comptroller Auditor General of India (CAG) report on how Dassault Aviation has failed on its promises of transfer technology to DRDO against its commitment in the deal. "Is the CAG report the opening of a can of worms?" wondered Chidambaram in a couple of tweets on Thursday.
"CAG finds that the vendors of the Rafale aircraft have not confirmed the transfer of technology under the offset contract. The offset obligations should have started on 23-9-2019 and the first annual commitment should have been completed by 23-9–2020, that is yesterday. Will the government say if that obligation was fulfilled?" the former Union finance minister questioned the Central government.
Under India's offset policy, foreign defence entities are mandated to spend at least 30 per cent of the total contract value in India through procurement of components or setting up of research and development facilities. The offset norms are applicable to all capital purchases above Rs 300 crore made through imports. The offset obligations can be made through Foreign Direct Investment, free transfer of technology to Indian firms and purchase of products manufactured by Indian firms.
In a report tabled in Parliament, the CAG also painted a grim picture of 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 defence sector ranked 62nd out of 63 sectors receiving FDI. "In the offset contract relating to 36 Medium Multi Role Combat Aircraft (MMRCA), the vendors M/s Dassault Aviation and M/s MBDA initially proposed to discharge 30 per cent of their offset obligation by offering high technology to DRDO," the CAG said. "DRDO wanted to obtain technical assistance for the indigenous development of engine (Kaveri) for the Light Combat Aircraft. Till date the vendor has not confirmed the transfer of this technology," according to a press release issued by CAG.
