The Rafale deal negotiated by the National Democratic Alliance (NDA) government to procure 36 fighter jets was 2.86 percent cheaper than the United Progressive Alliance's (UPA) 2007 offer, the Comptroller and Auditor General (CAG) said in its report.

However, the auditor also admitted that comparison of prices posed "difficulties" and the report has redacted portions referring to specific break-up of the costs.

With regard to India specific enhancements, the deal was 17.08 percent cheaper, said the CAG report.

In terms of engineering support package and performance-based logistics, the deal was 6.54 percent expensive, it stated.

Defence minister Nirmala Sitharaman had claimed on the floor of the parliament that the base price of the aircraft under the 2015 deal is 9 percent cheaper than the previous deal.

CNBC-TV18 caught up with SBP Sinha, former Air Marshal who led Rafale negotiations; Ajai Shukla, columnist and former colonel; Sanjay Jha spokesperson, Congress and Gopal Krishna Agrawal, spokesperson, BJP, to decode the report.

SBP Sinha said, "I have gone through the CAG report, if you look at the portion where it talks of the cost comparison of the basic aircraft, it very clearly brings out that the cost reduction has been 9 percent. It has given a table where it has compared the cost between the two Medium Multi-Role Combat Aircraft (MMRCA) procurement and 36 Rafale procurements."

"The India specific enhancements (ISE) is almost 17 percent cheaper. Based on that table they have arrived at this figure of 2.86 percent wholistically. As per my information goes, the difference was much higher and I am sure that the ministry of defence (MoD) will sit across the table and discuss this with them and resolve this issue and come out with the correct figures," Sinha added.

"The pricing mechanism and all the terms of contract are made in a manner where everybody fits in. So, you actually lose focus on the equipment that you are buying, it is more to bring in the procedural aspects in line to satisfy all the participants and this is what CAG in its report has recommended," he said.

On bank guarantee, Sinha said, "It is part of the standard contract document and the format for bank guarantee speaks of vendors and bidders, it does not talk of governments. The word sovereign guarantee does not exist in Defence Procurement Procedure (DPP)."