Even as Congress party president Rahul Gandhi attempts to build a corruption case against Prime Minister Narendra Modi and his government over the Rafale deal on two counts of "escalated cost of fighter aircrafts" and benefiting Reliance Anil Dhirubhai Ambani group with a Rs 45,000 crore offset deal, the chairman of the group Anil Ambani has in a letter claimed that the "Congress has been misinformed, misdirected and misled by malicious vested interests and corporate rivals".
Even as Congress party president Rahul Gandhi attempts to build a corruption case against Prime Minister Narendra Modi and his government over the Rafale deal on two counts of "escalated cost of fighter aircrafts" and benefiting Reliance Anil Dhirubhai Ambani group with a Rs 45,000 crore offset deal, the chairman of the group Anil Ambani has in a letter claimed that the "Congress has been misinformed, misdirected and misled by malicious vested interests and corporate rivals".
Anil Ambani's letter last week addressed to the Congress president is a point by point rebuttal of the allegations which Rahul Gandhi has been levelling against the government and the Reliance group over the deal.
In the letter, Ambani has expressed deep anguish over the attacks he and his company have been facing.
The letter terming all allegations as baseless, ill-informed and unfortunate is the second written one by Ambani to Rahul Gandhi.
In December, he had explained the role of Reliance in the offset deal with French aircraft manufacturer Dassault. In the latest letter Ambani has said, "Rafale fighter jets are not being manufactured by Reliance or the Dassault Reliance Joint Venture. All 36 planes are to be 100 per cent manufactured in France, and exported from France to India."
In a strong counter against the "Rs 45,000 crore benefit to the group despite lack of experience" charge levelled by Rahul Gandhi against Reliance, Ambani has stated in the letter that "not a single component" of the 36 Rafale aircraft purchased by India "worth a single rupee is to be manufactured by Reliance".
Ambani in his letter adds, "Our role is limited to offset exports and export obligations. More than 100 medium, small and micro enterprises (MSMEs) will participate in this, along with public sector undertakings like BEL and Defence Research & Development Organization (DRDO). This role strengthens Indian manufacturing capabilities, and is in pursuance of the Offsets Policy introduced by the Congress-led UPA Government itself from 2005 onwards."
He states that, "there is no contract from the MoD to any Reliance Group company related to 36 Rafale aircraft and the allegations of Reliance benefitting by thousands of crores is a figment of imagination, promoted by vested interests. Simply put, no contract exists with the Government of India."
Countering Gandhi's allegation that Reliance Defence was set up 10 days before the announcement of the Rafale deal in 2015, Ambani says, "The Reliance Group announced its decision to enter the defence manufacturing sector in December 2014-January 2015, months before the intention for purchase of Rafale aircraft. In February 2015, we informed the Indian Stock Exchanges of the companies we have incorporated."
The statement issued by Reliance says "Allegations of Reliance benefitting by thousands of crores is a figment of imagination, promoted by vested interests."
The Ambani group caught in a political crossfire has tried answering the questions raised about its lack of experience compared to state-owned HAL which was overlooked for the deal.
The company said that Dassault choose Reliance Defence Ltd to meet its 'offset' or export obligation in the contract and the Ministry of Defence has no role in the selection of Indian partners by the foreign vendors.
Reliance Defence Ltd CEO Rajesh Dhingra speaking to PTI earlier said that the government-to-government deal requires all 36 aircraft to be delivered in a 'fly-away' condition which means "they are to be exported from France by Dassault" and "HAL or anyone else cannot be the production agency for the simple reason that no aircraft are to be produced in India".
He said HAL was a nominated production agency for the 126 Medium Multi-Role Combat Aircraft (MMRCA) programme, which never reached the contract stage. "Reliance Defence or any other Reliance group company has not received any contract from the MoD till date, related to 36 Rafale aircraft. This is absolutely unfounded and incorrect," he told PTI.
Despite his first two page letter attempting to clarify the situation, Rahul Gandhi has been attacking the government and Reliance for signing the Rafale deal with each aircraft costing more than the price agreed to.
In the deal negotiated by the previous UPA government to create a "bofors redux" Rahul gandhi has been charging the Modi government of promoting crony capitalism by signing a deal that will benefit "one businessman".
The French company Dassault had inked a joint venture with Reliance Group to meet its offset requirement of the contract under which a foreign supplier of equipment agrees to manufacture a given percent of his product (in terms of value) in the buying country.
There are two kinds of offset contacts. One, the direct offsets which are directly linked to the original defence contact involving companies agreeing to transfer concerned technological knowledge or use local suppliers to build the equipment it has agreed to sell to the government.
Second are the indirect offsets which have virtually nothing to do with the deal and usually involve the company making up investment in local industries.
In the Rafale deal, it has not been specifically mentioned what components Dassault will manufacture in India. The Opposition has been demanding a joint parliamentary party probe amidst a gathering political storm to corner the government over the Rafale deal.
Anil Ambani's letter last week addressed to the Congress president is a point by point rebuttal of the allegations which Rahul Gandhi has been levelling against the government and the Reliance group over the deal.
In the letter, Ambani has expressed deep anguish over the attacks he and his company have been facing.
The letter terming all allegations as baseless, ill-informed and unfortunate is the second written one by Ambani to Rahul Gandhi.
In December, he had explained the role of Reliance in the offset deal with French aircraft manufacturer Dassault. In the latest letter Ambani has said, "Rafale fighter jets are not being manufactured by Reliance or the Dassault Reliance Joint Venture. All 36 planes are to be 100 per cent manufactured in France, and exported from France to India."
In a strong counter against the "Rs 45,000 crore benefit to the group despite lack of experience" charge levelled by Rahul Gandhi against Reliance, Ambani has stated in the letter that "not a single component" of the 36 Rafale aircraft purchased by India "worth a single rupee is to be manufactured by Reliance".
Ambani in his letter adds, "Our role is limited to offset exports and export obligations. More than 100 medium, small and micro enterprises (MSMEs) will participate in this, along with public sector undertakings like BEL and Defence Research & Development Organization (DRDO). This role strengthens Indian manufacturing capabilities, and is in pursuance of the Offsets Policy introduced by the Congress-led UPA Government itself from 2005 onwards."
He states that, "there is no contract from the MoD to any Reliance Group company related to 36 Rafale aircraft and the allegations of Reliance benefitting by thousands of crores is a figment of imagination, promoted by vested interests. Simply put, no contract exists with the Government of India."
Countering Gandhi's allegation that Reliance Defence was set up 10 days before the announcement of the Rafale deal in 2015, Ambani says, "The Reliance Group announced its decision to enter the defence manufacturing sector in December 2014-January 2015, months before the intention for purchase of Rafale aircraft. In February 2015, we informed the Indian Stock Exchanges of the companies we have incorporated."
The statement issued by Reliance says "Allegations of Reliance benefitting by thousands of crores is a figment of imagination, promoted by vested interests."
The Ambani group caught in a political crossfire has tried answering the questions raised about its lack of experience compared to state-owned HAL which was overlooked for the deal.
The company said that Dassault choose Reliance Defence Ltd to meet its 'offset' or export obligation in the contract and the Ministry of Defence has no role in the selection of Indian partners by the foreign vendors.
Reliance Defence Ltd CEO Rajesh Dhingra speaking to PTI earlier said that the government-to-government deal requires all 36 aircraft to be delivered in a 'fly-away' condition which means "they are to be exported from France by Dassault" and "HAL or anyone else cannot be the production agency for the simple reason that no aircraft are to be produced in India".
He said HAL was a nominated production agency for the 126 Medium Multi-Role Combat Aircraft (MMRCA) programme, which never reached the contract stage. "Reliance Defence or any other Reliance group company has not received any contract from the MoD till date, related to 36 Rafale aircraft. This is absolutely unfounded and incorrect," he told PTI.
Despite his first two page letter attempting to clarify the situation, Rahul Gandhi has been attacking the government and Reliance for signing the Rafale deal with each aircraft costing more than the price agreed to.
In the deal negotiated by the previous UPA government to create a "bofors redux" Rahul gandhi has been charging the Modi government of promoting crony capitalism by signing a deal that will benefit "one businessman".
The French company Dassault had inked a joint venture with Reliance Group to meet its offset requirement of the contract under which a foreign supplier of equipment agrees to manufacture a given percent of his product (in terms of value) in the buying country.
There are two kinds of offset contacts. One, the direct offsets which are directly linked to the original defence contact involving companies agreeing to transfer concerned technological knowledge or use local suppliers to build the equipment it has agreed to sell to the government.
Second are the indirect offsets which have virtually nothing to do with the deal and usually involve the company making up investment in local industries.
In the Rafale deal, it has not been specifically mentioned what components Dassault will manufacture in India. The Opposition has been demanding a joint parliamentary party probe amidst a gathering political storm to corner the government over the Rafale deal.