Rafale deal: Dassault Aviation on Thursday declined the report by French publication 'Mediapart' that said the makers of Rafale jets considered picking Reliance Defence as the offset partner in India “imperative and mandatory” to bag the contract. The Mediapart in its report had said that a document obtained by it shows that Dassault considered this (Dassault-Reliance) alliance as a ‘counterpart’, ‘imperative and mandatory’, to get the Rafale deal. However, the company denied the reports and clarified by saying that it was not given an option other than Anil Ambani's Reliance Defense as an offset partner. The company said it was necessary to have an offset partner in the Raphael deal, but choosing Reliance company as a partner was not mandatory for them. Dassault was free to choose any company,  the company said in a press release.


Here are the clarifications by Dassault Aviation over Rafale contract:

"Rafale contract for India: clarifications by Dassault Aviation

(Saint-Cloud, France, October 10, 2018) – Within the framework of the September 2016 Inter-Government Agreement between France and India, Dassault Aviation has sold 36 Rafale aircraft to India. In compliance with the Indian regulations (Defence Procurement Procedure) and as frequent with such a contract, assault Aviation has committed to offsets in India worth 50% of the value of the purchase.

In order to deliver some of these offsets, Dassault Aviation has decided to create a joint-venture. Dassault Aviation has freely chosen to make a partnership with India’s Reliance Group. This joint-venture, Dassault Reliance Aerospace Ltd (DRAL), was created February 10, 2017. Other partnerships have been signed with other companies such as BTSL, DEFSYS, Kinetic, Mahindra, Maini, SAMTEL,… Other negotiations are ongoing with a hundred-odd other potential partners.

In compliance with French regulations, Chief Operating Officer Loïk Segalen informed, May 11, 2017, the Central Works Council of the creation of the DRAL joint-venture in order to fulfil some of the offsets commitment.

The cornerstone for the DRAL plant in Nagpur (Maharashtra) was laid October 27, 2017. This plant will manufacture parts for Falcon 2000 business jets and, in a second step, parts for Rafale aircraft.

An initial team of Indian managers have been trained for six months to our manufacturing processes in our plant in Biarritz (France). The first Indian killed workers have also benefited from an intensive training in our manufacturing techniques in France.

The first Falcon 2000 parts will be delivered by end 2018."


Earlier, here's what Mediapart reported:

“C’était une vraie fausse inauguration. Une « première pierre » symbolique posée sur du gazon prédécoupé, sous un chapiteau de circonstance, à Nagpur (centre de l’Inde), mais qui annonçait le début de la construction de la « future usine » Dassault-Reliance. Selon un document interne à Dassault obtenu par Mediapart, un haut cadre du groupe d’aviation avait expliqué aux représentants du personnel que la joint-venture était une « contrepartie », « impérative et obligatoire » pour décrocher le marché du Rafale.” (Translation below)

"It was a false inauguration. A symbolic "first stone" was placed on pre-cut turf, under a capital of circumstance, in Nagpur (central India), but it announced the beginning of the construction of the "future factory" Dassault-Reliance. According to an internal Dassault document obtained by Mediapart, a senior member of the aviation group had explained to the staff representatives that the joint venture was a "counterpart", "imperative and mandatory" to get the Rafale market."