Anil Ambani Writes To Rahul Gandhi On Rafale Saying That His Party Has Been Misinformed

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New Delhi: Reliance Group chairman Anil Ambani has written a letter to Congress president Rahul Gandhi on the Rafale fighter jet deal saying his party has been “misinformed, misdirected and misled” by “malicious vested interests and corporate rivals” on the issue.

Ambani, who had first written to Gandhi on the issue in December, last week again wrote to him saying not a single component worth a single rupee is to be manufactured by his group for the 36 Rafale jets India is buying from France, the company said in a statement in New Delhi.

Gandhi has been attacking the government for inking the deal at a much higher price than the one the previous UPA regime had negotiated. While he has accused the government of changing the deal to benefit “one businessman”, his party has demanded a JPC probe into the deal.

“Allegations of Reliance benefitting by thousands of crores is a figment of imagination, promoted by vested interests,” the company statement said, quoting from Ambani’s letter. “Simply put, no contract exists with the Government of India.”

French company Dassault, which is supplying the fighter jets, has entered into a joint venture with Reliance Group to meet its offset requirement of the contract.

Under defence offset, a foreign supplier of equipment agrees to manufacture a given percent of his product (in terms of value) in the buying country. Sometimes this may take place with technology transfer.

While direct offsets are linked to the original defence contact where companies often agree to transfer relevant technological know-how or use local suppliers to build the equipment they are selling to the government, indirect offsets have nothing to do with the deal and can include the company making up investments in local industries.

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