Modi gets reprieve as auditor says new French jet deal better

Bloomberg

The Indian government’s $8.7 billion purchase of French warplanes was cheaper than a bid negotiated under the previous government, the country’s auditor said, potentially weakening an opposition campaign alleging corruption ahead of federal polls.
Prime Minister Narendra Modi bought 36 Rafale fighters in 2015 from Dassault Aviation SA at 2.86 percent lower than the price negotiated by the former coalition government headed by the Congress Party, India’s Comptroller and Auditor General said in the report tabled in parliament on Wednesday. The delivery will also be faster.
“The CAG report would probably take the winds off the opposition parties’ attack on the Modi government regarding Rafale procurement,” said Rahul Bedi, a New Delhi-based analyst at Jane’s Information Services. “However, the political slug fest would continue, as it is a battle between reality and perception.”

Under Pressure
Modi has been under pressure in the run up to polls due by May to disprove a campaign spearheaded by the Congress which alleges the jets were bought at a higher price and the new deal unduly benefited Indian billionaire Anil Ambani. Both the government and Ambani, whose Reliance Group is a partner of Rafale-builder Dassault have denied the allegations, as has Dassault.
The 2015 deal had better terms for a weapons package, but was costlier by more than 6 percent on engineering support package and logistics, the report found.
The auditor did not include the pricing details, citing confidentiality required for defense purchases.
“We have a claim, and we don’t have price points. I fail to see how something can claim to be an audit without offering price details,” said Manoj Joshi, a distinguished fellow at the New Delhi-based think tank, Observer Research Foundation. “That’s the biggest problem.”
India’s Supreme Court examined the issue and rejected a plea to investigate the purchase in December.
“The truth shall prevail,” senior government minister and former defense minister Arun Jaitley tweeted after the report was tabled.