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Log inNarendra Modi's stupidity on full display as he hands out billions to a french company which is struggling to survive
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Narendra Modi's stupidity on full display as he hands out billions to a french company which is struggling to survive
by Guest Tue Apr 14, 2015 9:16 pm
http://www.business-standard.com/article/opinion/ajai-shukla-make-in-india-on-the-guillotine-115041301159_1.html
To justify handing out billions to a French company that is struggling to survive, rather than directing the money towards India's fledgling aerospace industry, the government has deployed the tired bogey of national security, citing "the critical operational necessity of fighter jets in India". Defence Minister Manohar Parrikar had declared that these 36 Rafales would enter the IAF service within two years. Apparently, the government has a two-year threat assessment that requires two squadrons of Rafales so urgently that we must abandon a decade-long (and widely praised) selection process right at the point of culmination...
Indian negotiators had made it clear to Dassault that it must lower prices and increase indigenisation to win that tender. Yet it is now clear this is not to be. With Dassault reeling on the ropes, Mr Modi last week scuppered the negotiations by presenting France with an order for 36 Rafale fighters. His apparent wish for a successful summit drove three weeks of frenetic New Delhi-Paris talks that handed a delighted Dassault an unexpected knockout victory.
Essentially, Dassault has dragged out negotiations until New Delhi's need increased, and the wish to seem strong on defence converged with the desire to make a diplomatic splash in Paris. At that point the French were rewarded for their obstinacy with exactly what they wanted - an order for fully built aircraft without the need to transfer technology. Says a keen observer of Indian defence procurement: "All vendors are now clear that ignoring India's demands long enough ends in a reward that makes all Christmases come at once. This doesn't bode well for New Delhi in that next negotiation on whatever."
To justify handing out billions to a French company that is struggling to survive, rather than directing the money towards India's fledgling aerospace industry, the government has deployed the tired bogey of national security, citing "the critical operational necessity of fighter jets in India". Defence Minister Manohar Parrikar had declared that these 36 Rafales would enter the IAF service within two years. Apparently, the government has a two-year threat assessment that requires two squadrons of Rafales so urgently that we must abandon a decade-long (and widely praised) selection process right at the point of culmination...
Indian negotiators had made it clear to Dassault that it must lower prices and increase indigenisation to win that tender. Yet it is now clear this is not to be. With Dassault reeling on the ropes, Mr Modi last week scuppered the negotiations by presenting France with an order for 36 Rafale fighters. His apparent wish for a successful summit drove three weeks of frenetic New Delhi-Paris talks that handed a delighted Dassault an unexpected knockout victory.
Essentially, Dassault has dragged out negotiations until New Delhi's need increased, and the wish to seem strong on defence converged with the desire to make a diplomatic splash in Paris. At that point the French were rewarded for their obstinacy with exactly what they wanted - an order for fully built aircraft without the need to transfer technology. Says a keen observer of Indian defence procurement: "All vendors are now clear that ignoring India's demands long enough ends in a reward that makes all Christmases come at once. This doesn't bode well for New Delhi in that next negotiation on whatever."
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