The CAG has spoken: Modi's Rafale deal is cheaper than UPA's

In a big relief for the Narendra Modi government, country's top auditor Comptroller and Auditor General (CAG) has said in its audit report that the Rafale fighter jet deal signed in 2016 was 2.86 per cent cheaper than the UPA's deal in 2007. The much-awaited CAG audit report on Capital Acquisitions in Indian Air Force was tabled in Rajya Sabha that included the government to government Rafale deal signed between India and France.The report does not disclose the actual price of the 36 Rafale fighter jets contracted by the NDA government. However, it includes examination of the pricing.The prices have been redacted in the report based on the insistence of the Defence Ministry citing the Indo-French agreement of 2008 and the provisions of inter-government agreement. 67971834 Blunting opposition charges of overpricing, the 141-page CAG report has mentioned that the fly away price of the jet is same as agreed in the 2007 by the UPA government. The report also said that compared to the 126 aircraft deal, India managed to save 17.08 percent money for the India Specific Enhancements in the 36 Rafale contract.Further, the report said that the delivery schedule of the first 18 Rafale aircraft is better than the one proposed in the 126 aircraft deal, by five months. Finding issues in the UPA era 126 aircraft deal, CAG says Defence Ministry team had said in 2015 that the proposal of Dassault Aviation Rafale should have been rejected in technical evaluation stage itself as it was non-compliant with RFP requirements. 67971899 Reacting on the report, Union Minister Arun Jaitley said that the truth has come out. "Satyameva Jayate” – the truth shall prevail. The CAG Report on Rafale reaffirms the dictum," Jaitley said in Twitter.Taking a dig at the Congress, Jaitley said: "It cannot be that the Supreme Court is wrong, the CAG is wrong and only the dynast is right.""The lies of ‘Mahajhootbandhan’ stand exposed by the CAG Report," Jaitley said.

from Economic Times http://bit.ly/2Ssd5WZ
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