The Comptroller and Auditor General (CAG) report on Rafale deal, which was submitted in Rajya Sabha on Wednesday, has no clear winners as you cannot compare the price of UPA’s 2007 offer of 126 Rafale aircraft with NDA's 36 fighter jets.

“Comparison of prices under 2007 and 2015 offers has posed its own difficulties because the package it offered in 2007 included the price of license production of 108 aircraft in India, while the 2015 offer included only direct flyaway aircraft, which was compared costs of 18 flyaway aircraft. Costs are fungible,” said the CAG report.

As per the UPA agreement, 18 Rafale aircraft were to be manufactured in France and 108 in India in collaboration with the Hindustan Aeronautics Ltd. In the NDA deal, the government will acquire 36 fighter jets in a flyaway condition.

So, the cost of the fighter aircraft will be different when it is purchased in a flyaway condition from France rather than manufactured in India.

The NDA deal cost each aircraft over Rs 1,670 crore as against Rs 526 crore finalised by the UPA government, according to the Congress.

However, the CAG findings submitted in Rajya Sabha do not disclose the actual price of the 36 Rafale jets inked by the NDA government.

Overall the 2015 deal price was 2.86 percent cheaper than the 2007 price, the CAG report said, adding that the offer made on the missile procurement implied a cost saving of 17.08 percent.

The vendor charged an excess of 6.54 percent more in the area of engineering support package (ESP), in the area of performance-based logistics, 2.68 percent more in the area of training and 1.05 percent less in the area of weapon package in 2007.

On the cost of procurement

, the CAG said the basic flyaway aircraft bought at the same price as UPA’s 2007 offer.

Coming to the delivery schedule, the 141-page CAG report has found that there was an improvement of one month in the delivery schedule for 16 Rafale fighter jets in flyaway condition than the one negotiated by the UPA government.

Talking on India-specific enhancements, NDA's contract saved 17.08 percent of money compared to UPA's deal.

Further on bank guarantee, the offer made in 2007 had included 15 percent bank guarantee against advance payments. In the 2015 offer, there were no financial and performance bank guarantees.

First Published:Feb 13, 2019 2:59 PM IST