In the wake of the media reports that allegedly claimed that former French President Francois Hollande said that it was the choice of Indian government and not France to make Anil Ambani’s Reliance Defence as Dassault Aviation’s partner in the Rafale deal, the Defence Ministry on Saturday issued its clarification on the Offset Policy. In a statement issued, the defence ministry dubbed the reports as unnecessary controversies that are being sought to create headlines. While reiterating its stance over the selection of Reliance Defence as the Offset partner by Dassault, the government stated that it has no role in the selection of the Indian firm.

In the statement, the ministry also persuaded to understand the Offset Policy and how it comes to play. While defining the idea of the policy, the statement read, “To leverage its huge arm-imports in order to develop a strong indigenous industry, a flow-back arrangement is made in the defence contracts, which is widely known as offsets, and constitutes a certain percentage of the contract value.”

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The press statement also highlighted that the reports that came into light in February, 2017, that reported a JV  between Reliance Defence and Dassault Aviation. The statement said that it was a  commercial arrangement between two private companies. The statement also highlighted a report which suggested that in February, 2012 the Dassault Aviation, within two weeks of being declared the lowest bidder for procurement of 126 aircraft by the previous Government, had entered into a pact for partnership with Reliance Industries in Defence sector.


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