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Government waived anti-corruption clauses in Rafale deal
Why is it in news?
- The €7.87 billion Rafale deal between India and France involved major and unprecedented concessions from the Indian government.
- It includes dropping of critical provisions for anti-corruption penalties and making payments through an escrow account.
More in news
- Political implication for current government: This has significant political implications for the Narendra Modi government which has claimed that eliminating corruption is a major plank of its agenda for governance and promised action against alleged corruption in defence deals struck during the United Progressive Alliance Government.
- Standard Defence Procurement Procedure (DPP) clauses dropped: DPP clauses on “Penalty for use of Undue Influence, Agents/Agency Commission, and Access to Company accounts” of Dassault Aviation and MBDA France were dropped by the Indian government in the supply protocols.
- Terms of the IGA: Under the terms of the IGA signed between India and France in Delhi on September 23, 2016, Dassault is the supplier of the Rafale aircraft package while MBDA France is the supplier of the weapons package to the Indian Air Force.
Source
The Hindu