PM Modi’s Rafale deal is cheaper than Congress’s previous negotiations: CAG report

By Team MyNation  |  First Published Feb 13, 2019, 2:14 PM IST

The report shows that the deal, signed by the Modi government, was 2.86% cheaper than the price negotiated by the previous UPA government.

New Delhi: The much-awaited comptroller and auditor general (CAG) report on the capital acquisition in Indian Air Force punctures holes in allegations made by Rahul Gandhi on Rafale deal. 

The report shows that the deal, signed by the Modi government, was 2.86% cheaper than the price negotiated by the previous UPA government.

Though the report does not disclose the actual price of the 36 Rafale fighter jets contracted by the NDA government, it includes examination of the pricing.

Interestingly, the Congress has been asking the centre to disclose the pricing of the fighter jet but the UPA government too had signed a deal to hide the price of the jets. This has been revealed by the CAG report tabled in Parliament today.

The Congress has been attacking the Modi government with alleged irregularity in the high-profile deal. Recently, Congress president Rahul Gandhi made a personal attack on Prime Minister Narendra Modi and blamed his office of bypassing rules.
 
What CAG report says 
 
The CAG report outlines that the 2016 deal terms were lower in terms of price and faster in terms of delivery, while ensuring better maintenance and lower escalation.

The report tabled in the Parliament on Wednesday shows that with regard to India specific enhancements, the deal was 17.08 per cent cheaper. In terms of engineering support package and performance based logistics, the deal was 6.54 per cent expensive, it stated. The NDA deal was 2.86 per cent cheaper than the one negotiated by the UPA government in 2007, according to the report.
 
 Key highlights of CAG report
 

  • NDA’s  2016 deal is 2.8 per cent cheaper than UPA’s proposed 2007 Rafale deal.
     
  • Compared to 126 aircraft deal, India managed to save 17.08 per cent money for the India Specific Enhancements in the 36 Rafale contract.
     
  • The deal also comes with a better delivery schedule by five months.
     
  • CAG report doesn't give exact prices

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