The government on Monday claimed that the combined effect of Indian Air Force's reducing combat potential and its adversaries enhancing their combat potential have made the situation “asymmetrical” and extremely critical.
Submitting its response to the Supreme Court on the details of the steps in the decision making process leading to the award of 36 Rafale fighter jets, the government has stated that during the long period of 'inconclusive' 126 multi medium role combat aircraft (MMRCA) process, India's adversaries inducted modern aircraft and upgraded their older versions.
Earlier, a PIL was filed jointly by Yashwant Sinha, Prashant Bhushan and Arun Shourie seeking a court-monitored CBI probe into the corruption allegations in the 36 Rafale fighter jets deal.
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"They (adversaries) acquired better capability air-to-air missiles and inducted their indigenous fighters in large numbers. Further, they modernized and inducted aircraft with advanced weapon and radar capabilities," the government said in the details, submitted in the apex court.
It further said: "As per available information, our adversaries inducted more than 400 fighters (equivalent to more than 20 squadrons) during the period from 2010 to 2015. They inducted not only the fourth generation aircraft but also the fifth generation stealth fighter aircraft."
The government also stated that the Dassault’s bid was selected in January 2012 and negotiations commenced in February 2012 for procurement of 126 Medium Multi Role Combat Aircrafts(MMCA) which included 18 aircraft in direct flyaway condition and 108 aircraft to be manufactured under licence by HAL over a period of 11 years from the date of agreement.
"Contract negotiations could not conclude mainly due to unresolved issues related to 108 aircraft to be manufactured in India. The man-hours required by HAL for producing aircraft was 2.7 times higher compared to the French side for manufacturing of Rafale jet in India. Issues related to contractual obligation and responsibility for 108 aircraft to be manufactured in India could not be resolved," the government said in its reply.
It also stated that the issues between HAL and Rafale manufacturer remained unresolved for more than three years and the delay impacted the cost of acquisition, as the offer was with in-built escalation and was influenced by the Euro-Rupee exchange rate variations. The government also stated that the deal was finalised following the Defence Procurement Procedures (DPP) formulated in 2013.
The government's reply also confirmed that the approval of Defence Acquisition Council (DAC), headed by the defence minister and the highest body for defence procurement, took a month after Prime Minister Narendra Modi made the announcement of the deal.
"As per the DPP 2013, approval of the DAC for procurement of 36 fly-away Rafale aircraft from the French government through Inter Governmental Agreement(IGA) was taken on 13 May, 2015," the government stated. Modi made the announcement on April 10, 2015 in Paris.
The government also said that an Indian Negotiation Team (INT) headed by the Deputy chief of the IAF was constituted to negotiate the terms and conditions of the procurement of 36 Rafale jets with France, which started negotiations in May 2015 and continued upto April 2016. A total of 74 meetings, which included 48 internal INT meetings and 26 external INT meetings with French side, were held during the negotiations, the government claimed.
"The INT report was finalised and signed on July 2016, which indicated better terms and conditions arrived at as a result of negotiations as compared to 126 MMRCA case and achievements of negotiations team," the government added.
Regarding the selection of offset partner, the government stated that there is no mention of any private business house in the inter-governmental agreement.
