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Rafale deal - Modi govt provides deta...

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Bumper
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Posted on Tuesday, November 13, 2018 - 05:47 am:       


Tantri_the_mantri:


desam lo enni reliancelu unte manake antha manchidi





Agree. But desam antha reliance chesthunaruu.
beedi hatavoo desh batchavoooooo
 

Pavala
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Posted on Tuesday, November 13, 2018 - 05:37 am:       


Lazybones:

siggu padu Pavala bro, cabinet committee on security norms bypassed, defence procurement procedure was not followed, countries biggest defence scam, ela support chestaav saami... anni vadhilesaav ga...


siggu paddaanu....inthakee scam enti? Ambani gaadiki ivvadam scam aa leka Modi or gang emanna de'saaraa leka quid pro quo emanna undhaa? lekunda scam scam ani aristhe emosthaadhi....same with Polavaram and all govt contracts manollaki ivvadam scam lanti argument aa
Mahesh performance lo 10% kooda Chiru cheyyaledu.... - New_user
Spyder - Critically acclaimed disaster - New_user
 

Lazybones
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Posted on Tuesday, November 13, 2018 - 04:55 am:       


Pavala:



siggu padu Pavala bro, cabinet committee on security norms bypassed, defence procurement procedure was not followed, countries biggest defence scam, ela support chestaav saami... anni vadhilesaav ga...
 

Pavala
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Posted on Tuesday, November 13, 2018 - 04:27 am:       


Lazybones:

HAL not capable and it takes 2.5 times more labor Ani idhe thread rest of them antunaaru.


varnee manchi melikalu thiruguthunnav ga....HAL is 2.5 times more expensive to execute the main task...for that they are out of race....they clearly said we won't do offset contracts....
Mahesh performance lo 10% kooda Chiru cheyyaledu.... - New_user
Spyder - Critically acclaimed disaster - New_user
 

Pavala
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Posted on Tuesday, November 13, 2018 - 04:21 am:       


Botsa_fan:

pattiseema and polaram key estimates 10 times revise chesaru..mana telugu tammulu verey vallani adagadam.Mana corruption choosukondi kindhana.


mana contracts annee manake mallee...question esthe nee dikkunna chota cheppuko anna adda golu vaadhana....pakkanodiki questioning :D
Mahesh performance lo 10% kooda Chiru cheyyaledu.... - New_user
Spyder - Critically acclaimed disaster - New_user
 

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Posted on Tuesday, November 13, 2018 - 04:00 am:       


Teenmaar:

evaro chepthe enduku nammuthaam ?




Raul Vinci APPA
Bofors backdrop vunna family rafale ni scam anatam sithramu
 

Teenmaar
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Posted on Monday, November 12, 2018 - 01:05 pm:       

Modi or ambani should write an article explaining why this is not a scam

evaro chepthe enduku nammuthaam ?

no one believes
 

Lazybones
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Posted on Monday, November 12, 2018 - 01:02 pm:       


Rajusk:

idi bold lo pettali




MMRCA stands for Medium Multi-role combat air craft. It is a completely different category of fighter jets and is very different from Air superiority fighter jets like Su-30 MKI ( the Indian version of Su-30 and the most advanced, beating even the Russian version) , The F-15, The F-22 raptor. MMRCA was need to particularly replace the single engine MIG-21 and The MIG-27. The Indian project LCA was going no where. Thus a proposal to buy 126 MMRCA was floated.
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:58 pm:       

NDA Deal:

This deal costs almost 8 billion dollars . Also people who are arguing that this deal has much more extra stuff than the previous Deal must go back and read the joint statement of the French PM and PM modi saying that the fighter jets in current deal will be of the same configuration as the previous deal. Now the question comes Why is congress making a big deal out of this? Is there a Scam? Lets look at some important points relating to current deal.

1. This deal is said to be PM Modi’s call, even the then Defence Minsiter Manhor Parikar was taken by Surprise .
2. This deal does not involve any kind of Transfer of technology as all the air crafts are being brought in Fly away condition
3. Involvement of Anil Ambani further strengthens congress’s case as his company was formed 12 days prior to the deal was announced. Coincidence? He also accompanied the PM to France when this deal was announced. Another coincidence? Lets look at Mr. Ambani’s Track Record
He has a very bad record when it comes to business. 9 Billion dollars in debt, Ran his Telecom Company into the ground and the only Defense connection he has is the Pipnav Shipyard which is late by almost 6 years in delivering the Offshore patrol vessels to the Indian navy.
It is also believed his company Reliance Entertainment produced a film for then French PM’s Partner, another coincidence?


4. Other than Dassault no other company went for Anil Ambanis company, rather choose TATA, L&T who are much more experienced and involved in defense manufacturing .

5. The government has given given him the responsibility of maintaining the Jets and he will be paid 1 lakh crore for the entire life cycle of the Jets on top of Lions share of the off-sets
 

Rajusk
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Posted on Monday, November 12, 2018 - 12:58 pm:       


Teluguhero:

The 2016 deal is for highly advanced versions of the Rafale (F3+), highly customized to operate in Indian conditions, compared to the original MMRCA was for the F2 version minus any Indian specific upgrades.




idi bold lo pettali
 

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Posted on Monday, November 12, 2018 - 12:53 pm:       


Mandharam:

iphone 5 price was 500$
iphone X price is 1000$




Polavaram price entha 2012 lo ?
Ade polavaram cost entha 2018 lo?
TT's only can answer..
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:52 pm:       

UPA Deal:
1. Buying a total of 126 aircrafts
2. 18 in fly away condition and the rest to be manufactured by HAL under transfer of technology .
3. The complete weapon suite except some add-ons from Israel
4. The deal initially cost 11 Billion dollars in total but went up to 15 billion dollars towards the end. lets say 20 billion dollars because of additions of weapons like MICA and meteor missiles
5. Dassault is not the only french company involved, Snecma ( makes the engine, Thales ( makes the radar), MBDA ( missile manufacturer).
6. Offset obligations were very similar to the PM modi’s deal
 

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Posted on Monday, November 12, 2018 - 12:52 pm:       


Mandharam:

2012 prices tho compare chesthunnaru meeru
2012 fighter planes konte emi use defense ki..Our enemies have upgraded much before
So they might have asked some customization/enhancements

iphone 5 price was 500$
iphone X price is 1000$




Simple and straightforward still some people dont understand this logic


https://www.opindia.com/2018/02/decoding-the-india-france-g2 g-rafale-deal-why-it-is-not-a-scam/


Exorbitant Price?

The comparisons between the per unit price at which the NDA Government has signed the contract in 2016 and the per unit price at which the UPA government was negotiating the deal for 126 aircraft, are not at all tenable. Another reason why it cannot be directly compared is that the deliverables in the two cases are entirely divergent.

The fact is that the approximate acquisition cost of the Rafale aircraft has already been provided to the Parliament. The total Rafale Deal Value is Euro 7.88 Bn (Approx Rs. 59,630 Crores), and here is the deal breakdown:

Unit Cost: Euro 91.7 Mn (Approx Rs. 688.30 Crores) Per Aircraft x 36 = Euro 3.30 Bn

Weapons including SCALP ALCM (Air Launched Cruise Missiles) and METEOR BVRAAM (Beyond Visual Range Air to Air Missiles) – Approx Euro 710 Mn

Performance-Based Logistics Support – Approx Euro 350 Mn

India Specific Enhancement (ISE) – Approx Euro 1.7 Bn

Infrastructure (Creating world-class BASE level, maintenance operations, state of the art climate controlled hardened air shelters, maintenance support setups at both bases for both aircraft) – Approx Euro 1.8 Bn

These costs are one-off and will not be incurred for any future batches. It also includes AMC of simulators for ten years and training of IAF pilots and engineers.

The most significant drawback of the present Rafale deal is small ordering quantity; 36 against a total requirement of 189 units (126 + 63 units follow-on clause). It can be addressed by additional follow-on orders that, without any doubt, would benefit immensely from these new conditions.

The 2016 deal is for highly advanced versions of the Rafale (F3+), highly customized to operate in Indian conditions, compared to the original MMRCA was for the F2 version minus any Indian specific upgrades.

In the earlier proposal of the UPA Govt., which ended in a stalemate, there was no provision for transfer of technology but only to manufacture under license. Another point of departure from the original deal is that the NDA’s Rafale deal includes 50% offsets as opposed to earlier 30%.

Furthermore, the NDA Rafale deal includes a comprehensive Performance Based Logistics (PBL) agreement wherein DA is legally obligated to assure that 75% of the IAF’s Rafale fleet is available for operations at any given moment in time. For comparison, in 2015 the IAF’s SU-30MKI fighter fleet had an availability rate of less than 50%.

It is true that in the absence of a system of proactive disclosure of the defense deals have not helped matters and the procedural requirement is only to assess the reasonableness of the price quoted by the vendor.

However, to form a definitive opinion about whether or not the price, in this case, is reasonable, it is essential to see how it compares with prices offered to other buyers.

Qatar – The Rafale purchase price per unit including weapons, infrastructure, and training, but without country-specific enhancements. – Euro 262.5 Mn.

Eqypt – In a similar deal for purchase of 24 Rafale fighter jets Egypt had to shell out 5.2 Bn Euros. Unit Price – Euro 216.7 Mn.

Even if we include the one-off costs in case of India, the per unit cost comes to Euro 218.8 Mn. So, where is the price mismatch?

6. Why Reliance and not HAL?

So, does it finally boils down to the selection of Anil Ambani’s Reliance Defense (DRAL) as the Indian Offset Partner (IOP) by Dassault?

First, why not state-owned Hindustan Aeronautics Limited (HAL)?

In 2011 the US Ambassador had flagged the acute disrepair in HAL including lying & pilferage. The potential for HAL to successfully partner with US firms on a truly advanced aircraft remains untested and suspect,” US Ambassador, Timothy Roemer. Dassault has also been concerned over HAL’s capabilities.

It’s not the NDA government that refused HAL rather DA was reluctant for not being convinced about manufacturing ability of HAL and therefore unwilling to take the liability of the jet made by HAL.

Despite that at least till 2015, the NDA government tried to get DA to accept liability for the HAL manufacturing.

Now let’s look at the claim of Modi government favoring the Ambanis.

We do not know if Dassault intends to discharge the entire obligation only through DRAL. The offset contract is between the MoD and the vendor DA, and the MoD has no role in the selection of the IOP by the vendor.

Under the contract, DA and its Tier-I/II companies have to discharge an offset obligation of nearly Rs 30,000 crore. They need able IOPs who can fulfill this mammoth obligation.

Considering that the vendor carries the full responsibility for discharging the offset obligation, it would be odd to believe that Dassault would choose an IOP who cannot deliver. It will expose DA to the risk of defaulting on its offset obligation that entails penalties and much more.
 

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Posted on Monday, November 12, 2018 - 12:48 pm:       


Lazybones:

opindia website yenti bro, postcard, swajyamag lantidhi inkoti dinchaara mana IT cell?




"We are three years behind in Sukhoi 30, 25 are yet to be delivered. In Jaguar, we are six years behind, five years behind in LCA (light combat aircraft-Tejas). In Mirage 2000 upgrade, we are two years behind, and in HTT (Hindustan Turbo Trainer aircraft) 40 we are five years behind," Dhanoa said, listing the pending deliveries by HAL



rest of the story here(venjoy maadi):

https://economictimes.indiatimes.com/news/defence/rafale-dea l-a-good-package-and-a-game-changer-air-force-chief/articles how/66056980.cms

btw..Air Force chief winterview adi..
 

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Posted on Monday, November 12, 2018 - 12:44 pm:       


Lazybones:

anni vethukolenu Bro, common sense tho aduguthunna renegotiate antey rate thagginchataaiki chestaaru, 3 times penchataaniki kadhu...

you didn't answer IAF 126 flights adigithey, 3 times yekkuva price ki renegotiate chesi 36 thaginchaaru (initial deal 126 flights), country security compromise kaaledha? apart from SCAM.




2012 prices tho compare chesthunnaru meeru
2012 fighter planes konte emi use defense ki..Our enemies have upgraded much before
So they might have asked some customization/enhancements

iphone 5 price was 500$
iphone X price is 1000$

ala thinking chesthu mundhuku vellipondi

both iphones kada..same maker kada
why 1000$ now in 2018 ante? i can't help
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:43 pm:       

opindia website yenti bro, postcard, swajyamag lantidhi inkoti dinchaara mana IT cell?
 

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Posted on Monday, November 12, 2018 - 12:41 pm:       

Decoding the India-France G2G Rafale deal- Why it is not a Scam
https://www.opindia.com/2018/02/decoding-the-india-france-g2 g-rafale-deal-why-it-is-not-a-scam/


Fact Check: Here are facts of the Rafale deal that are being selectively ignored by politicians
https://www.opindia.com/2018/09/fact-check-here-are-facts-of -rafale-deal-that-are-being-selectively-ignored-by-politicia ns/

All you need to know about Indias association with Dassault and process to purchase Rafale since 2004
https://www.opindia.com/2018/09/all-you-need-to-know-about-i ndias-association-with-dassault-process-to-purchase-rafale-s ince-2004/
 

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Posted on Monday, November 12, 2018 - 12:39 pm:       


Lazybones:

common sense tho aduguthunna renegotiate antey rate thagginchataaiki chestaaru, 3 times penchataaniki kadhu...





The Congress has maintained that the government bought the jets at an inflated price of 7.87 billion euros (about Rs 59,000 crore). Congress president Rahul Gandhi had alleged in a tweet in March that the NDA government paid Rs 1,670 crore per aircraft while the UPA government had negotiated a price of Rs 570 crore. However, the defence ministry’s internal calculations, accessed by ET, show that each Rafale jet works out Rs 59 crore cheaper than what it would have cost under the UPA deal.


The notes state that with the India specific enhancements, under the UPA’s terms the Rafale jets would have cost Rs 1,705 crore per jet, compared with the Rs 1,646 crore the NDA government negotiated for the purchase of 36 combat aircraft.





A big component of the cost is attributed to India-specific enhancements to the jets, from the ability to take off from high-altitude stations such as Leh to an enhanced infrared search and track sensor and a potent electronic jammer pod. The cost of these enhancements has been taken as standard – they will cost the same for 36 jets as they would for 126 – since these are one-time research and development costs.
 

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Posted on Monday, November 12, 2018 - 12:39 pm:       


Rajusk:

China lo Supreme Court unda..News to me




SC is full of left scum
It needs to be balanced with equal representations from right and left wings.
Otherwise SC will become a nuisance for the progress of the nation
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:36 pm:       


Rajusk:

ennisarlu cheptaru rao garu ide ramayanam ...
past lo oka 20 thaadulu paddayi..please search..on details




anni vethukolenu Bro, common sense tho aduguthunna renegotiate antey rate thagginchataaiki chestaaru, 3 times penchataaniki kadhu...

you didn't answer IAF 126 flights adigithey, 3 times yekkuva price ki renegotiate chesi 36 thaginchaaru (initial deal 126 flights), country security compromise kaaledha? apart from SCAM.
 

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Posted on Monday, November 12, 2018 - 12:31 pm:       


Rajusk:

ennisarlu cheptaru rao garu ide ramayanam ...

past lo oka 20 thaadulu paddayi..please search..on details




LOL
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:29 pm:       


Aggipidugu116:

Adi Mana kulanayakudu dochesedu.. so manam adagam..




 

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Posted on Monday, November 12, 2018 - 12:27 pm:       


Teenmaar:

supreme court




China lo Supreme Court unda..News to me:D
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:26 pm:       


Botsa_fan:

pattiseema and polaram key estimates 10 times revise chesaru..mana telugu tammulu verey vallani adagadam.Mana corruption choosukondi kindhana.



nannu telugu tammudini chesaava
 

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Posted on Monday, November 12, 2018 - 12:22 pm:       

supreme court
 

Aggipidugu116
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Posted on Monday, November 12, 2018 - 12:21 pm:       


Botsa_fan:

pattiseema and polaram key estimates 10 times revise chesaru..mana telugu tammulu verey vallani adagadam



Adi Mana kulanayakudu dochesedu.. so manam adagam..
 

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Posted on Monday, November 12, 2018 - 12:20 pm:       


Lazybones:

3 times higher price ki enduku negotiate chesaaru?




ennisarlu cheptaru rao garu ide ramayanam ...

past lo oka 20 thaadulu paddayi..please search..on details
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:18 pm:       

IAF wanted 126 kada, 36 enduku konnaru, 3 times higher price ki enduku negotiate chesaaru?
 

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Posted on Monday, November 12, 2018 - 12:16 pm:       


Lazybones:

Then fix need to done in HAL, not defame them and put someone our own.




fix HAL ante em cheyyali..Nirmala madam..spanner pattukoni HAL floor lo digala ..LOL..

they are already manufacturing LCAs..

HAL is just another Public Sector..Public Sectors atla enduku unnai ani andariki telusu..

btw..2012 lo HAL ichina time estimate was 2.7 times..so appati government em chesindi fixing ki anedi kooda teliyali mari ..vallu unna 10 years lo :D



Lazybones:

Idhena desabakthi?




desa bhakthi is to protect country first ..anduke ready to fly konnaru first..manufacturing later..
 

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Posted on Monday, November 12, 2018 - 12:16 pm:       


Mandharam:




HAL not capable and it takes 2.5 times more labor Ani idhe thread rest of them antunaaru.

Evaro okati fix ayithey, I’ll continue further discussion


Teluguhero:



IT cell Bro, pakkaku thappuko...
 

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Posted on Monday, November 12, 2018 - 12:11 pm:       


Rajusk:




Then fix need to done in HAL, not defame them and put someone our own.
Idhena desabakthi?
 

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Posted on Monday, November 12, 2018 - 12:11 pm:       

https://www.opindia.com/2018/11/rafale-deal-we-are-not-in-th e-off-set-business-says-hal-chairman-urging-politicians-to-n ot-bring-hal-into-this/

Rafale deal: ‘We are not in the off-set business’, says HAL chairman urging politicians to ‘not bring HAL into this’
Madhavan also informed that in the upcoming purchase of 110 fighter jets by India, HAL will have to be selected as a partner by any company that wins the deal.

At a time when Congress president Rahul Gandhi can’t stop accusing that Narendra Modi government has ‘snatched’ a ₹ 30,000 crore offset business in the Rafale deal from HAL and given it to Anil Ambani’s Reliance, HAL chairman has told that the company is not after such offset deals. In an exclusive interview with journalist Manu Pubby and published on the Economic Times, HAL chairman R Madhavan said that the public sector company was not a contender for offset business in the deal to buy 36 Rafale jets.

R Madhavan had taken over as Chairman and Managing Director (CMD) of Hindustan Aeronautics Limited on September 1, after the term of previous CMD T Suvarna Raju was over.

Madhavan also said that the company has asked its employees to not get involved with any political party on the issue. On the Rafale deal, he said, “our message is clear — please do not bring HAL into it”. He said that the company does not want to get involved in the issue because it has a negative impact on HAL.

He reminded that even the worker unions of the company have issued statements that they don’t want to be part of any controversy on the issue. On October 13, Rahul Gandhi wanted to address HAL employees in the company premises, but both HAL authorities and employee unions refused this meet. Later, Rahul Gandhi had addressed some current and former employees outside the company premises.

The HAL CMD said that the company is not in the offset business. He said the company is into manufacturing of aircraft, and transfer of technology and production are not the same as offsets. While some offset business may come to HAL, that is not a priority for the company.

“In fact, we are not even contending for the offsets. We do not plan, for example, to have a line to make a foreign civilian jet. Our prime business is manufacturing, not offsets”, he added. It can be noted that the Dassault Reliance joint venture, which is the prime target of Rahul Gandhi, is currently making parts for the Falcon business jet, which is a civilian plane made by Dassault.

Commenting on HAL’s own capability of making fighter planes, Madhavan said that although the company may lack the capacity to make enough planes on time, their capability and technical expertise can’t be questioned. He said that HAL has partnered with four private sector companies for the manufacture of the LCA Tejas, these private companies will be making almost the entire structure of the plane, while HAL will only do the final integration. The HAL chief said that the company would like to focus on design, integration, flight testing and support.

Madhavan also informed that in the upcoming purchase of 110 fighter jets by India, HAL will have to be selected as a partner by any company that wins the deal. There is a requirement of 40% indigenisation in that order, and only HAL has the capability for that.

On November 2, Madhavan had said that HAL has started a major expansion of its manufacturing facilities and controversies around that Rafale deal has not affected the morale of its employees. He had informed media that the company has an order book of ₹64,000 crore which will be executed in four years. To achieve this, the company will be investing ₹1,400 crore during the financial year 2018-19 to scale up its facilities.

It will be interesting to see if Rahul Gandhi will now stop bringing up HAL in his attack on the government on the Rafale deal.
 

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Posted on Monday, November 12, 2018 - 12:10 pm:       


Lazybones:

How reliance is better than HAL?




HAL would never ever do junk work delegated by a company of the same level
HAL is/was never ready to work for another aircraft maker. PERIOD

offset work ante paaki pani lantidhi
why would companies like HAL,ISRO,DRDO vouch for offset contracts?

Media wants to play to the gallery. So they never publish HAL's stance in the public

But there is a possibility of offset companies getting benefited which cannot be avoided
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:09 pm:       

Tantri Bro, in other words reliance debts lo kurukupoyindhi
So fellow Gujju bro ni kaapadali, So he’ll find back into general elections?
 

Rajusk
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Posted on Monday, November 12, 2018 - 12:07 pm:       


Lazybones:

Then why defense minister says HAL is not capable?
Do you agree with her?



Teluguhero:


HAL required 2.7 times higher man-hours compared to Dassault for manufacturing the Rafale in India.


 

Botsa_fan
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Posted on Monday, November 12, 2018 - 12:05 pm:       

pattiseema and polaram key estimates 10 times revise chesaru..mana telugu tammulu verey vallani adagadam.Mana corruption choosukondi kindhana.
Fan of Prabhas,Jr.NTR and SDT
 

Tantri_the_mantri
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Posted on Monday, November 12, 2018 - 12:03 pm:       

idi nenu entha gonthu chinchukunna artham kaadu.. but from O&G, petrochem perspective.. Reliance is way better than any standard govt run operation..

manollu profitmakers ni villainze cheyatam aapali.. videsallo manam pani chese companylu kooda entho kontha rules ni beding chestayi..

Reliance is a very well run company.. alaanti company defense loki vasthe manchide..

desam lo enni reliancelu unte manake antha manchidi
 

Lazybones
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Posted on Monday, November 12, 2018 - 12:03 pm:       

Raju Bro,
Then why defense minister says HAL is not capable?
Do you agree with her?
 

Rajusk
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Posted on Monday, November 12, 2018 - 11:55 am:       


Rajusk:




Amid a political slugfest over the Rafale fighter jet deal, state-run HAL's CMD R Madhavan on Wednesday said the aircraft manufacturing company is contending not to be an offset partner of any original equipment manufacturer.

He also said HAL's basic focus was on manufacturing of aircraft, helicopters, associated accessories and their repair and overhaul, and not in garnering offset business.

Production of aircraft from transfer of technology is totally different from offsets, according to him.
 

Rajusk
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Posted on Monday, November 12, 2018 - 11:54 am:       


Lazybones:

How reliance is better than HAL?




https://www.thehindubusinessline.com/companies/hal-not-conte nding-to-be-offset-partner-of-any-oem-cmd/article25437027.ec e

do festival !!!
 

Aggipidugu116
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Posted on Monday, November 12, 2018 - 11:51 am:       


Lazybones:

How reliance is better than HAL?




neeku example ista.. maa uncle some big positon in Avadi ordinance factory, chennai Arjun tanks building chesedi..he used to go to balasore in orrisa to monitor missle testing... he said they took 25 years to develop arjun tank and it did not even satisfy indian military needs..indian govt sector companies are as useful as leftards to the country..
 

Lazybones
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Posted on Monday, November 12, 2018 - 11:44 am:       

IT cell bro, price thagginchataaniki evaranna negotiate chestaaru, 3 times penchataaaniki kaadhu.
How reliance is better than HAL?

IAF wanted 126 flights, why it is reduced to 36?

Compromise country security for Ambani’s ?
 

Lazybones
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Posted on Monday, November 12, 2018 - 11:36 am:       

IT cell bro, nee Salary yenta IT cell lo?

Submit chesindhi court lo affidavit 9 pages.

IT cell bro, can you answer below from affidavit?
Price renegotiate yenduku chesaaru? Price yenduku revival cheyyaledu affidavit lo?
Ambani ela Dooradu? Initial deal lo Ambani ledu.
Ambani company lo Dassault enduku 300 Cr invest chesindhi?
 

Teluguhero
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Posted on Monday, November 12, 2018 - 11:12 am:       

https://www.opindia.com/2018/11/modi-govt-provides-details-o f-decision-making-process-involved-in-rafale-deal-says-all-p rocedures-followed/

Modi govt provides details of decision making process involved in Rafale deal, says all procedures followed
The government also reiterates that it has no role to play in the election of offset partners by the vendors, and there will be hundreds of offset contracts, as there are 2 vendors and 33 sub-vendors with offset obligations in the deal.


Today the government of India submitted an affidavit at the Supreme Court detailing the steps of the decision-making process before ordering 36 Rafale jets from France. On 10th October, the Supreme Court had said that it would like to know about the steps taken in the decision-making process. Further on 31st October, the apex court had asked the government provide such details to the petitioners of the PIL, excluding any sensitive information that comes under the Official Secrets Act.

Obeying that order, the government has provided the details of the Rafale deal to the petitioners.

DPP and DAC
The norms and procedures were all followed in the Rafale deal, said the government. The response of government gives a detailed account of the Defence Procurement Procedure (DPP), which governs all defence related procurements by the Indian government. The government amended through several reviews the DPP which was introduced in 2002.



The government notes the Preamble of the DPP, which states that defence acquisition is not a standard open market commercial transaction and it has several unique features like supplier constraints, technical complexity, foreign supplier, geopolitical ramifications etc. That’s why decision making in defence procurement is unique and complex.

The government says that it followed the Defence Procurement Procedure-2013 (DPP-2013) in the procurement of 36 Rafale jets. The reply mentions every step involved in the DPP-2013, from the preparation of user requirement to the award of the contract. It says that Defence Acquisition Council (DAC) is the highest body for defence procurement matters. The DAC is headed by the defence minister and it includes all Service Chiefs, along with several secretaries in the defence ministry.

Background
The reply of government gives background the deal. In 2007, bid for 126 fighter aircraft was issued, which was for the direct purchase of 18 aircraft and rest 108 to be made in India. Six vendors submitted their proposals in 2008. Detail technical and field evaluations were conducted in 2009 and 2010. In 2011 commercial bids were opened, and Dassault Aviation was selected as the winner in 2012. After that, contract negotiations started in the same year. But the negotiation could not be concluded due to differences over the manufacture of 108 jets in India by Hindustan Aeronautics Limited (HAL). The reason for this was lack of agreement between Dassault and HAL over the following issues:

HAL required 2.7 times higher man-hours compared to Dassault for manufacturing the Rafale in India.
Dassault was required to undertake contractual obligation for entire 128 jets, both made in India and France. But these were issues in this regard which could be resolved.
This situation remained in place for more than three years, delaying the purchase. This delay also increased the cost of purchase, due to in-built escalation and also variations in Euro-Rupee exchange rates. During the period, enemies of India had already inducted more than 400 fighter planes. This delay was also impacting other upgradation programs of Indian Air Force. In view of this, the decision to purchase 36 Rafale jets in fly-way condition was taken.

Decision-making process followed
The reply by government states that all requisite steps as per the DPP-2013 were followed while deciding to purchase 36 jets. After completion of the processes under the DPP, necessary approval of the DAC was taken in 2015. The DAC was informed that the capability of the 36 Rafale aircraft will be as per the requirement for the original bid to buy 126 jets.

An Indian Negotiation Team (INT) was constituted to negotiate the terms and conditions for the deal, which was headed by the Deputy Chief of Air Staff of the IAF. A total of 26 meetings took place between Indian and French sides, while the INT met 48 times for internal meetings. A variety of aspects, including pricing, delivery schedule, maintenance terms, offsets, etc were discussed in those meetings. The government says that INT had arrived at better terms related to price, delivery and maintenance as compared to the earlier order for 126 jets. After finalising the deal, it was placed before the Cabinet Committee on Security in August 2016. The CCS provided the due approval on the same day. After this, the relevant protocols for the Inter-Governmental Agreement (IGA) were signed between Indian Defence Minister and French Defence Minister, on behalf of the respective governments.

Offset
As the major controversy created by the opposition in the deal is one offset partner selected by Dassault, the government has given a detail response on offsets. The government states that no private business house was mentioned in the IGA or Offset Contract. The offset clause does not envisage manufacture of the 36 Rafale aircraft in India by any public or private sector firm. And as per Offset Contract, the vendor is required to provide the details of Indian Offset Partners at the time of claiming offset credits or one year before discharge of offset obligation. As per the contract, the annual offset implementation will start from October 2019, and Dassault is yet to submit any formal proposal for carrying out offset obligations.

A foreign vendor that discharge offset obligations by several routes, they are:

Direct purchase of products or services from Indian enterprises, both public and private sector.
Foreign Direct Investment in joint ventures with India enterprise for manufacture/ maintenance of eligible products and services.
Transfer of technology to Indian enterprises for manufacture/ maintenance of eligible products and services.
Providing equipment to Indian enterprises.
Technology Acquisition by Defence Research Development Organisation (DRDO) in high technology areas.
Government’s reply says that vendor will be responsible for fulfilment of offset obligations. If the Defence Ministry has not barred the Indian enterprise, then the vendor is free to select an enterprise of their choosing.

The offset guidelines under DPP-2013 governs the offset contracts under Rafale deal. The deals signed were two separate deals, one with Dassault and the other with MBDA, which is providing missiles for the jets bought by India.

There is no offset obligation in the first three years of signing the contracts, which means the obligations start from October 2019 onwards.

Other than the two vendors, offset obligation will also have to discharged by Tier-1 sub-vendors. Dassault has 21 such Tier-1 sub-vendors and MBDA has 12.

The government of India’s response clarified that they followed every norm under the Defence Procurement Policy while deciding to purchase the 36 Rafale jets.

The government also reiterates that it has no role to play in the election of offset partners by the vendors, and there will be hundreds of offset contracts, as there are 2 vendors and 33 sub-vendors with offset obligations in the deal.

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