Documents reveal how two core conditions of a government-to-government contract were diluted in the run-up to purchasing 36 Rafale jets
Latest News – The Narendra Modi government has consistently claimed that the Rafale aircraft deal was between two governments – India and France – and therefore there was hardly any possibility of India’s interests being compromised in any way.
However, government documents accessed by The Wire reveal the Ministry of Law and Justice had opined that the “core elements of Government-to-Government (G-to-G) character” of the Rafale deal were not acceptable to France and consequently had to be diluted and waived in the final inter-governmental agreement (IGA) signed between the two governments in September 2016.|Rafale Deal
So what were the two core G-to-G elements that France did not accept? The law ministry gave a clear view to the Ministry of Defence that in G-to-G contracts, “the responsibility for the supply of equipment and related industrial services and performance of the entire contract remains with the foreign government”. The second condition cited by the law ministry was that “the dispute resolution mechanism remained at Government-to-Government level only”. However, in the course of negotiating the IGA, certain sensitive issues arose whereby the French government sought to transfer its own direct responsibilities and obligations to the industrial supplier – in this case Dassault Aviation.
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