New Delhi: At a time when the Narendra Modi government is under attack over the Rafale agreement, it is clear that the policy of signing intergovernmental agreements without “classic” under the standard operating procedure or standard contractual document was defined by the previous UPA government, led by Congress, in 2013. Prime Minister Narendra Modi said India was pleased with the agreement on the purchase of Rafale aircraft. He said the “financial aspects will be settled soon.” Under Indian law, agreements have already been signed by French companies with many Indian companies, both public and private. In 2013, the UPA government introduced a new policy allowing the Ministry of Defence to not comply with established rules and to sign intergovernmental agreements with friendly countries, in accordance with the mutually agreed provisions between the two parties. The intergovernmental agreement signed on 23 September 2016 between the French and Indian authorities for the supply of 36 Rafale aircraft in India relates to the obligations of the French government with regard to the sole guarantee of the supply and quality of these equipment. The intergovernmental agreement follows Modi`s agreement between the government to buy 36 Rafale fighter jets from Dassault Aviation SA during his visit to France in April. India has signed an intergovernmental agreement with France for the purchase of 36 Rafale fighter jets, while the two countries would draw up financial details for the same list of contracts by theme, type of contract, year and/or country “We are very pleased to have reached an agreement for the purchase of 36 Rafale aircraft with France,” Modi said in a joint address with French President Francois Hollande after the signing of 13 agreements, including the Rafale pact. Click here to read the Mint ePaperMint is now on telegram. Join the mint chain in your telegram and stay up to date with the latest economic news.
Access to Exclusive Economic Times stories, editorials and DeModi expertise has shortened the long process of weapons acquisition, which has been stalled since 2012 in discussions with Dassault Aviation. “There may be cases where purchases from friendly countries may be necessary due to geostrategic benefits that may occur in our country. Such contracting would not traditionally correspond to the standard allocation procedure and standard contractual document, but would be based on consensual provisions of the governments of both countries. This contracting takes place on the basis of an intergovernmental agreement, after approval by the COMPETENT Financial Authority (CFA), according to point 71 of the defence award procedure, 2013. . Media reports have allowed the NDA government to depart from standard clauses in the defence procurement process, while it signed the Rafale agreement, including anti-corruption clauses for private contractors.