New Rafale Deal 2.8% Cheaper Than UPA Agreement: Auditor (CAG) Report

The Comptroller and Auditor General (CAG) has found the government’s €7.87-billion Rafale fighter jet deal 2.86% cheaper than the one United Progressive Alliance was negotiating, less than the defence ministry’s 9% claim but just enough for the Bharatiya Janata Party to counter the Congress’ charges of corruption ahead of elections.

The much-awaited CAG report, which was tabled on the last day of the budget session of Parliament on Wednesday, also criticised the defence ministry for fixing “unrealistically low benchmark prices”, which were 57% less than Dassault’s first offer. The report said the benchmarking under the UPA regime was also off the mark.

The report, however, does give the Opposition some fodder, especially on the issue of sovereign guarantee, where it notes that the Indian side could not persuade France to provide one.

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