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Rafale fighter deal: India imposes penalty on MBDA not Dassault for delay in fulfilling offsets commitments

Source : Times Now

Rafale fighter jets deal: India imposes penalty on MBDA not Dassault for delay in fulfilling offsets commitments
Matra BAE Dynamics Alenia (MBDA) missile system File Photo (photo illustration) © Maxppp - Photographer: HAYOUNG JEON



The Indian government has imposed and collected a penalty from defence manufacturer MBDA for the delay in fulfilling offsets commitments in the 36 Rafale fighters, a report stated on Wednesday. While the Rafale jets are manufactured by the Dassault Aviation, Matra BAE Dynamics Alenia (MBDA) supplies the weapons package supplier for the fighter planes.

India and France had signed the €7.8 billion contract for 36 French Rafale fighters in September 2016. The MBDA has paid the penalty amounting to less than euro 1 million. The fine was imposed on the defence manufacturer “after it slipped in discharging its offsets obligations for the first applicable year from September 2019-September 2020,” TOI quoted a source as saying.

Notably, the Comptroller and Auditor General (CAG) in 2020 had stated that Dassault Aviation and MBDA are yet to fulfil their offset obligations of offering high technology to India under the Rafale aircraft deal. 

The Indian government had signed a deal with France in September 2016 to procure 36 Rafale jets at a cost of Rs 59,000 crore, and the offset obligations were part of the contract.

In the offset contract relating to 36 Medium Multi Role Combat Aircraft (MMRCA), the vendors M/s Dassault Aviation and M/s MBDA initially proposed to discharge 30 per cent of their offset obligation by offering high technology to DRDO,” the CAG had said.

DRDO wanted to obtain technical assistance for the indigenous development of engine (Kaveri) for the Light Combat Aircraft. Till date the vendor has not confirmed the transfer of this technology,” the CAG had further stated.

Rafale, an omni-role aircraft which means it can carry out at least four missions in one sortie, was formally inducted into the Indian Air Force (IAF) at a formal function at Air Force Station, Ambala on September 10, 2020.

The 4.5 generation aircraft were a part of 17 Squadron, the “Golden Arrows”, which was resurrected on September 10, 2019.

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