New Delhi: India has imposed a penalty for delay in meeting the offset commitment in a 7.8 billion euro agreement for 36 French Rafale fighters, as part of the entire new policy to tighten the screw on the default weaponry department.
The good thing has been “enforced and collected” from Missile-Maker Mbda, which is a weapons package supplier for Jets Rafale produced by Dassault Aviation, in the Mega-inked contract by India in September 2016, the source of the defense on Tuesday.
India, apart from the intergovernmental agreement with France and the supply protocol for fighters and weapons, has also signed a large offset contract with danceult and smaller with Mbda’s partners.
Under the agreement, 50% of the contract value (around Rs 30,000 Crore) must be hijacked back to India as an offset or repeat investment.
Offset in the Rafale agreement spread over seven years from the date of signing a contract, without debit in the first three years.
“This subtle has been appointed to MBDA after slipping in carrying out its offset obligations for the first year that applies from September 2019-September 2020,” said a source.
An CAG report, by chance, has criticized the fact that the maximum offset release in the Rafal agreement – 57% by MBDA and 58% by Dassault – is scheduled for only the seventh year (2023).
With 5% of the lack of offset implementation in a certain year collected as a penalty, a fine imposed on MBDA reported less than 1 million euros 1 million.
“With the shortcomings brought to the second year, this case will be checked again,” added the source.
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Fine India European company for offset delays in Dealindia Rafale has imposed a penalty in European missile makers for delays in meeting offset commitments as part of Rafale Jet Transactions, Indian report time.
Deal 2016 to buy 36 Rafale Jets from Dassault Aviation in the condition of “Fliwaway”, valued at 7.8 billion euros, has the condition of Mandatinghoughhoughhough Mbda has paid a fine, he also protested with the Ministry of Defense (MOD).
Mbda, was contacted, refusing to comment on this problem.
Rafale’s agreement has also caused the main political dogfight between the Modi and Congress government.
As was first reported by TOI in August, mod broke the whip of foreign weapons majors for failure to fulfill their offset obligations, which saw around a dozen American companies, France, Russia and Israel were placed on the watch list.
Since then, four to five of these companies, including Mbda, have paid punishment to get out of the watchlist.
MOD has issued a warning to the default companies which is a guarantee of their existing performance banks can be scorched or the deduction made from payments scheduled for them.
India, of course, also needs to improve its offset policy, with foreign companies often complain about the difficulty of releasing their commitment.
Also read the leading French strategic allies in France in the Indo-Pacific region which is still boiling on the Aukus military pact among the US, Britain and Australia, which costs the Mega submarine agreement.
French Defense Minister Florence Parly told the value of Pandit his country committed to offering his best defense technology to India and collaborating in areas such as AI, CAG report, submitted in parliament in September last year, also called for a major overhaul of the entire offset policy, the stress was “almost Does not meet the purpose “to appoint advanced technology, attract FDI and strengthen the domestic defense industry base.
MOD has marked 56 offset contracts until now, with more than $ 13 billion to be excluded from 2008 to 2027.
However, according to the latest parliamentary report, only $ 3.7 billion has been issued by vendors until April 2021, where $ 2.16 billion It has been accepted into the audit and balance claims are under “clarification or inspection”.
India imposes a penalty for offset delays in the Rafale fighting agreement
