The story of Rafale Planes

Qatar announced Thursday a deal to buy 12 French-built Rafale fighter jets, as it faces a boycott by neighbouring Gulf states in the region's worst political crisis in years.

The 1.1-billion-euro ($1.3-billion) order, announced during an official visit by French President Emmanuel Macron, allows for an option to buy a further 36 jets. (Original source - French newspaper Le Monde)



This deal means Indian are paying more twice for Rafale planes as opposed to Qatar despite a bigger order(We are paying 7.6 billion euros for 36 planes).

The differences between the 2 rafale planes are not known.

Background information on India's deal

India floated a tender had an MRCA competition with RFI issued in 2004, RFP issues in 2007.

After a competition of 6 aircrafts, Dassault Rafale was selected in 2012 as winner. Under the plan 18 planes had to be manufactured in France and rest 108 planes in India through Technology Transfer.

French company Dassault refused to take responsibility for 108 HAL manufactured Rafales, citing doubts about Indian defence industry capability to accommodate the complex manufacturing and technology transfers of the aircraft.

Negotiations continued without any final result. On 31 July 2015 New Defence Minister Manohar Parrikar informed MRCA deal was officially withdrawn by government.

On 23 September 2016, Indian Defence Minister Manohar Parrikar and his French counterpart Jean-Yves Le Drian signed the contract for the purchase of 36 off-the-shelf Rafales in a deal worth €7.8 billion with an option for 18 more at the same inflation-adjusted price.


To counter argument that planes have been purchased at 3 times the price




Rajeev Deshpande based on his sources called it a cheap deal: https://economictimes.indiatimes.com/news/defence/nda-govt-saved-over-rs-12600-crore-in-rafale-deal/articleshow/61763326.cms


Following arguments have been made by defence minister Niramala Sitharaman


The decision to buy 36 Rafales was taken to address the urgent need of the IAF (Indian Air Force) because the UPA government did not pay any attention to defence preparedness of the armed forces...it (the UPA) was indecisive for 10 years to address this critical necessity of fighters for the IAF. Allegations relating to the Rafale deal are shameful, the deal was finalised following a transparent procedure. Between 2004 and 2014, the UPA govt could not come to a decision on Rafale acquisition.Therefore, when we came to power in 2014, we had to move forward so that the air force is not left with the need for preparedness. It pains me that the UPA govt, despite recognising the critical need for fighters for the IAF, did not conclude the deal for 10 years.



 


Another argument that is raised is Qatar got planes at 60% price because It was follow up order

So if India were to order Rafale planes  again the price works out to be 60% of 1687 crore = 1012 crore, which still leaves a gap of 280 crores to be explained.

Source: https://timesofindia.indiatimes.com/india/iaf-pitches-for-36-more-rafale-fighters-after-it-gets-the-first-36-from-france/articleshow/60226329.cms


The question this deal raises are

1. Do we have a standard laid out transparent procedure for defence deals? Given that we have MRCA competition tender has been withdrawn which is a bad precedence in itself.

2. How was Dassault Rafale able to keep negotiations for such a long time in limbo. Did we get screwed because we failed to include the liability clause while floating the tender?

3. What special benefit do we derive from deal with Rafale by paying 1,687 Crore rupees per plane against Qatar paying 732 Crore Rupees per plane?


Sources:

https://timesofindia.indiatimes.com/india/rafale-deal-allegations-sitharaman-slams-congress-says-upa-let-defence-preparedness-lag/articleshow/61688881.cms

https://www.yahoo.com/news/qatar-france-sign-fighter-jet-deal-amid-gulf-105029093.html

http://www.lemonde.fr/economie/article/2017/12/07/macron-au-qatar-plus-de-11-milliards-d-euros-de-contrats-en-guise-de-cadeau-de-bienvenue_5226053_3234.html

https://www.defensenews.com/global/mideast-africa/2017/12/07/qatar-moves-to-buy-more-rafale-jets-order-infantry-fighting-vehicles/
https://www.ndtv.com/world-news/qatar-france-sign-1bn-fighter-jet-deal-amid-gulf-crisis-1784950

https://economictimes.indiatimes.com/news/defence/nda-govt-saved-over-rs-12600-crore-in-rafale-deal/articleshow/61763326.cms

https://en.wikipedia.org/wiki/Indian_MRCA_competition

Himanta Biswa Sarma

Himanta Biswa Sarma worked with INC till 2016 and was accused of corruption by BJP
BJP even named Himanta as prime suspect in Louise Berger scam

On 9 April 2016 Amit Shah declared that all charges against Himanta Biswa Sarma will be probed.

On 2 September 2017, Assam high court begs to differ with Amit Shah's declaration by asking CBI to take over from Assam CID as probe in Louis Berger scam was being done in partisan manner.

http://indianexpress.com/article/india/india-others/assam-congress-leader-himanta-biswa-sarma-to-join-bjp/
https://thewire.in/173409/gauhati-high-court-hands-over-high-profile-louis-berger-corruption-case-to-cbi/
https://economictimes.indiatimes.com/news/politics-and-nation/all-charges-against-himanta-biswa-sarma-will-be-probed-amit-shah/articleshow/51757001.cms

Mc Donald and Domino's Story

Recently someone circulated the following picture on social network showing How McDonald's is not passing benefit of reduced GST to 5%

Domino's is also under investigation by DGS for not passing benefit of reduction in GST.

McDonald's has provided no explanation for increasing the price of items to keep the total same. The counter argument that can be created is GST has been reduced from 18% to 5% but Now the restaurants do not receive any tax input credit. Earlier they used to get 12% tax input credit on GST paid, thus keeping the cost of business for restaurants nearly unchanged.

Domino's has refused to present its side publicly saying - "We are in a silent period now, we would not be (able) to participate in any story." (Diplomatic speak for Let the story get buried in a few days with a wall of silence.)

McDonald's is not being shy of giving an impression that GST reduction gives them more value
I visited a McDonald's restaurant and found the following displayed prominently at cashier register

Is it that McDonald's is not passing benefit of GST on regular food but passing the benefit for Maharaja Mac?

The final losers on this wizardry of increasing taxes and then claiming to reduce taxes is the customer because with introduction of higher taxes, the food product prices was increased. Firms won't happily pass on complete benefit reduction in taxes (if any) to customer.

Student of economics understand this stickiness of prices. Apparently Finance Minister of this country doesn't. He raises taxes then does a roll back under public pressure forgetting the fact that prices won't come down immediately, firms will keep the increased revenue causing loss to consumer and inefficiency in market.

Source: https://economictimes.indiatimes.com/industry/cons-products/food/profiteering-notice-to-jubilant-foodworks-on-dominos-pizza-pricing/articleshow/63594627.cms

Godse Temple

Police can easily book the scoundrels under section 153 A for an act prejudicial to the harmony of public especially when the political masters take offence on unknown people raising anti india slogans blaming people without proof. Here a murderer has been installed for worshipping. But look at how tactful the BJP spokesperson is


"Mahatma Gandhi’s legacy is the legacy of this country and the Congress should not try to claim sole ownership of him. If anybody has violated the law and the Constitution, such activity would come under the purview of law," state BJP’s spokesperson Rajnish Jain told.


https://timesofindia.indiatimes.com/india/hindu-mahasabha-builds-godse-temple-congress-cries-sedition/articleshow/61666372.cms

http://indianexpress.com/article/india/hindu-mahasabha-sets-up-nathuram-godse-mahatma-gandhis-assassin-temple-kicks-up-row-4939797/

Cost of progress

A farmer in China has taught himself environmental law to fight the pollution by chemical companies rendering land unusable.

Local authorities suggest to drop thw case.

Favourites for 8th November

To commemorate the great step by Mr. Modi for eradication of black money.

1. My favourite video on black money

2. My favourite picture

3. My favourite song on black money

Looking forward to celebrate 8th November