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The Prime Minister's Office (PMO) was “monitoring” the progress of the 36 Rafale jets’ purchase deal, but this cannot be taken as “parallel negotiations” with the French side, the government told the Supreme Court on Saturday.

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The Indian Negotiating Team conducted comprehensive negotiations with the French side for about a year, holding 48 internal and 26 external meetings with the French side.

The approval of the CCS was taken before signing the IGA.

Besides, the Comptroller and Auditor General (CAG) had concluded that the price of 36 Rafales was 2.86% lower than the audit aligned price, apart from additional benefits that would accrue.

The CAG has acknowledged that the Rafale deal was a better bargain than the earlier aborted deal with Dassault for 126 Medium Multi-Role Combat Aircraft (MMRCA).

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Though the price discovery of 126 MMRCA was determined out of a global competitive tender, the reasonability of the price for Rafale through the IGA was established by CAG audit, the government pointed out.

While the past process of 126 MMRCA could not come to a conclusion in 15 years, the Rafale deal was concluded in over a year.

In contracts signed with Rosoboronexport, the requirement of bank guarantees was waived off in view of assurances provided through a ‘Letter of Comfort’ from the government of the Russian Federation, the government said, adding, “Similarly, in Foreign Military Sales (FMS) with the US government, no sovereign/bank guarantee is signed.”Further, in the Rafale procurement, the French government had proposed to provide ‘outstanding guarantees’ as per the IGA and a ‘Letter of Comfort’ from the French Prime Minister, the government noted.

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