New DelhI: The war of words between the Congress and the government over Rafale deal intensified on Wednesday as the opposition party rejected Finance Minister Arun Jaitely’s contention that the government had nothing to do with the selection of partners for offset supplies.
Senior Congress leader Anand Sharma said vendors have to disclose how the offset contracts would be discharged under the defence procurement policy.
“For him (Jaitley) to say that offset is not part of the contract is wrong,” he said and demanded a probe alleging that Anil Ambani’s Reliance Group had prior information that PSU Hindustan Aeronautics Limited would not get the offset contract.
The Congress’ reaction came after Jaitley accused the opposition party and its leader Rahul Gandhi of “peddling untruth” on the deal and seriously compromising national security.
In a Facebook blog, Jaitley on Wednesday refuted Congress’ allegation that the government had benefited Anil Ambani’s Reliance group, saying “Government of India has no contract whatsoever with any private industry in relation with the Rafale aircraft supplies”.
He said any Original Equipment Manufacturer (OEM) under the offset policy of the UPA can select any number of Indian partners, both from the private sector and the public for offset supplies.
“This has nothing to do with the Government of India and, therefore, any private industry having benefitted from the Government of India is a complete lie,” he said.
Anil Ambani’s Reliance group, which has slapped “Cease and Desist” notices on many Congress leaders asking them not to make false and defamatory statements on the deal, had also earlier asserted that Dassault, the French firm that is to supply 36 Rafale fighter jets, choose Reliance Defence Ltd to meet its ‘offset’ or export obligation in the contract and the Defence Ministry has no role in the selection of Indian partners by foreign vendors.
The company has also rejected allegations that Reliance Defence was incorporated days before announcement of the Rafale deal, saying three companies were incorporated in December 2014 and Reliance Group’s entry into defence sector was announced at Aero India in February 2015.
But the Congress on Wednesday rejected Jaitley’s assertions. Sharma said that under the defence procurement policy it is very clear that the vendor has to notify how the offset liability will be discharged.
“Only the prime minister knew that the offset contracts would not be given to HAL and he violated the oath of secrecy taken on the position he holds,” he said, adding “the Official Secrets Act says such things are not to be disclosed. How did Anil Ambani know that HAL will not get the contract and he set up his company 10 days before?” (PTI)