Dassault CEO Eric Trappier responds to Rahul Gandhi on Dassault-Reliance joint venture

Dassault Aviation Chief Executive Officer (CEO) Eric Trappier in an exclusive interview to ANI rubbished allegations made by Congress Party president Rahul Gandhi that the former lied about the details of the Dassault- Reliance Joint Venture (JV) for offset contracts in the Rafale Jet deal.&nbsp;

"I don`t lie. The truth I declared before and the statements I made are true. I don`t have a reputation of lying. In my position as CEO, you don`t lie," said Trappier when asked to respond to Rahul Gandhi`s charge that Dassault was covering up for possible cronyism in awarding the offset deal to Anil Ambani-led Reliance Group.&nbsp;

Rahul Gandhi, in a press conference on November 2, alleged that Dassault invested Rs 284 crore in a loss-making company promoted by Anil Ambani which was used to procure land in Nagpur.&nbsp;

"It is clear the Dassault CEO is lying.If an inquiry starts on this Modi is not going to survive it. Guaranteed," added Gandhi.Speaking to ANI in the Dassault hangar housed in Istres-Le Tube Air base located North of the French city of Marseille, Dassault`s CEO Eric Trappier said that they had prior experience dealing with the Congress party and the comments made by the Congress president made him sad.&nbsp;

"We have a long experience with the Congress party. Our first deal was with India in 1953 with Nehru and other Prime Ministers. We have been working with India. We are not working for any party. We are supplying strategic products like fighters to the Indian Air Force (IAF) and the Indian Government. That is what is most important," said Trappier.&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a>: ANI editor Smita Prakash interviews CEO Eric Trappier at the Dassault aviation hangar in Istre- Le Tube air… <a href="https://t.co/0igomqmE2i">https://t.co/0igomqmE2i</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1062216460422901761?ref_src=twsrc%5Etfw">November 13, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

When pressed further for the reason behind Dassault`s choice of Reliance as an offset partner which had no experience in manufacturing fighter jets, Trappier clarified that the money being invested was not going to Reliance directly but in a Joint Venture (JV) that included Dassault.&nbsp;

"We are not putting the money in Reliance. The money is going into the JV. I put my know-how free of charge on how to produce people. I have engineers and workers from Dassault who are taking the lead as far as the industrial part of this deal is concerned. At the same time, I have an Indian company like Reliance who is putting money into this JV as they want to develop their country. So the company is going to know how to produce aircraft," added Trappier.&nbsp;

Trappier clarified further about the investments being made by Dassault, adding that Reliance would match the amount since the shareholding pattern is 49% Dassault and 51% Reliance as per prescribed Government norms.&nbsp;

"We are supposed to put in this company together about Rs 800 crore as 50:50. For the time being, to start work in the hangar and to pay workers and employees, we have already put Rs 40 crore. But it will be increased to Rs 800 crore, which implies Rs 400 crore by Dassault in the coming five years," said Trappier.&nbsp;

He added Dassault has seven years to perform offset. "During first three years, we are not obliged to say with who we are working. We have already settled work and agreement with 30 companies, which represents 40% of total offset obligation as per contract. Reliance is 10% out of the 40, while rest 30% is a direct agreement between these companies and Dassault," Trappier said.&nbsp;

On the pricing issue, the CEO said that the present aircrafts are cheaper by 9 %. "Price of 36 was exactly the same when you compare with 18 flyaway. 36 is the double of 18, so as far as I was concerned, it should have been double the price. But because it was government to government, there was some negotiation, I had to decrease price by 9%.&nbsp; 
The price of Rafale in flyaway condition is less expensive in the 36 contract than the 126 contract," he said.&nbsp;

When asked about the initial agreement with Hindustan Aeronautics Limited (HAL) and the subsequent breakdown of talks with the Indian PSU for production of Rafale jets, the Dassault CEO said that if the initial deal of 126 jets went through they would not have hesitated to work with HAL and Mukesh Ambani-led Reliance.&nbsp;

"It`s because the 126 didn`t go smooth that the Government of India had to reconfigure to urgently acquire 36 from France. And then I took the decision to continue with Reliance, and HAL even said in the last few days that they were not interested to be part of the offset. So, it has been done by my decision and the decision of Reliance to invest in a new private company," added Trappier.&nbsp;

He added that Dassault was earlier in discussions with several other companies for offset tie-ups. "Obviously, we could have gone to Tata or other family groups. At that time, the decision to go ahead was not given to Dassault. We were in 2011, Tata was also discussing with other flying companies. We finally decided to go ahead with Reliance as they have experience in big engineering facilities," Trappier said.&nbsp;

Talking about the aircraft, the Dassault CEO explained that the present planes will have all necessary equipments but not weapons and missiles. "The weapons will be sent in different contract. But the aircraft with everything other than weapons will be dispatched by Dassault," he said.&nbsp;

Dassault Aviation Chief Executive Officer (CEO) Eric Trappier in an exclusive interview to ANI rubbished allegations made by Congress Party president Rahul Gandhi that the former lied about the details of the Dassault- Reliance Joint Venture (JV) for offset contracts in the Rafale Jet deal.

Dassault Aviation Chief Executive Officer (CEO) Eric Trappier in an exclusive interview to ANI rubbished allegations made by Congress Party president Rahul Gandhi that the former lied about the details of the Dassault- Reliance Joint Venture (JV) for offset contracts in the Rafale Jet deal. "I don`t lie. The truth I declared before and the statements I made are true. I don`t have a reputation of lying. In my position as CEO, you don`t lie," said Trappier when asked to respond to Rahul Gandhi`s charge that Dassault was covering up for possible cronyism in awarding the offset deal to Anil Ambani-led Reliance Group. Rahul Gandhi, in a press conference on November 2, alleged that Dassault invested Rs 284 crore in a loss-making company promoted by Anil Ambani which was used to procure land in Nagpur. "It is clear the Dassault CEO is lying.If an inquiry starts on this Modi is not going to survive it. Guaranteed," added Gandhi.Speaking to ANI in the Dassault hangar housed in Istres-Le Tube Air base located North of the French city of Marseille, Dassault`s CEO Eric Trappier said that they had prior experience dealing with the Congress party and the comments made by the Congress president made him sad. "We have a long experience with the Congress party. Our first deal was with India in 1953 with Nehru and other Prime Ministers. We have been working with India. We are not working for any party. We are supplying strategic products like fighters to the Indian Air Force (IAF) and the Indian Government. That is what is most important," said Trappier. #WATCH: ANI editor Smita Prakash interviews CEO Eric Trappier at the Dassault aviation hangar in Istre- Le Tube air… https://t.co/0igomqmE2i — ANI (@ANI) November 13, 2018 × When pressed further for the reason behind Dassault`s choice of Reliance as an offset partner which had no experience in manufacturing fighter jets, Trappier clarified that the money being invested was not going to Reliance directly but in a Joint Venture (JV) that included Dassault. "We are not putting the money in Reliance. The money is going into the JV. I put my know-how free of charge on how to produce people. I have engineers and workers from Dassault who are taking the lead as far as the industrial part of this deal is concerned. At the same time, I have an Indian company like Reliance who is putting money into this JV as they want to develop their country. So the company is going to know how to produce aircraft," added Trappier. Trappier clarified further about the investments being made by Dassault, adding that Reliance would match the amount since the shareholding pattern is 49% Dassault and 51% Reliance as per prescribed Government norms. "We are supposed to put in this company together about Rs 800 crore as 50:50. For the time being, to start work in the hangar and to pay workers and employees, we have already put Rs 40 crore. But it will be increased to Rs 800 crore, which implies Rs 400 crore by Dassault in the coming five years," said Trappier. He added Dassault has seven years to perform offset. "During first three years, we are not obliged to say with who we are working. We have already settled work and agreement with 30 companies, which represents 40% of total offset obligation as per contract. Reliance is 10% out of the 40, while rest 30% is a direct agreement between these companies and Dassault," Trappier said. On the pricing issue, the CEO said that the present aircrafts are cheaper by 9 %. "Price of 36 was exactly the same when you compare with 18 flyaway. 36 is the double of 18, so as far as I was concerned, it should have been double the price. But because it was government to government, there was some negotiation, I had to decrease price by 9%. The price of Rafale in flyaway condition is less expensive in the 36 contract than the 126 contract," he said. When asked about the initial agreement with Hindustan Aeronautics Limited (HAL) and the subsequent breakdown of talks with the Indian PSU for production of Rafale jets, the Dassault CEO said that if the initial deal of 126 jets went through they would not have hesitated to work with HAL and Mukesh Ambani-led Reliance. "It`s because the 126 didn`t go smooth that the Government of India had to reconfigure to urgently acquire 36 from France. And then I took the decision to continue with Reliance, and HAL even said in the last few days that they were not interested to be part of the offset. So, it has been done by my decision and the decision of Reliance to invest in a new private company," added Trappier. He added that Dassault was earlier in discussions with several other companies for offset tie-ups. "Obviously, we could have gone to Tata or other family groups. At that time, the decision to go ahead was not given to Dassault. We were in 2011, Tata was also discussing with other flying companies. We finally decided to go ahead with Reliance as they have experience in big engineering facilities," Trappier said. Talking about the aircraft, the Dassault CEO explained that the present planes will have all necessary equipments but not weapons and missiles. "The weapons will be sent in different contract. But the aircraft with everything other than weapons will be dispatched by Dassault," he said.

Price of 36 Rafale jets cheaper by 9%: Dassault CEO Eric Trappier

Anil Ambani's Reliance Defence Ltd will get about 10% of the offset investments from the <a href="http://www.wionews.com/india-news/rafale-deal-supreme-court-asks-govt-for-details-of-decision-making-process-170590">Rafale deal</a>, Dassault Aviation CEO Eric Trappier told AFP in an interview.&nbsp;

India is buying 36 Rafale fighter jets from France's Dassault Aviation.&nbsp;

Under India's defence acquisition laws, a foreign company making a large sale to India has to invest 30 of the money paid to it back in India. This is called an "offset".&nbsp;

"In full compliance with this regulation, Dassault Aviation therefore decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10% of these offset obligations," Trappier told AFP.&nbsp;

"We're in talks with about 100 Indian firms, including around 30 with which we've already confirmed partnerships," Trappier added.&nbsp;

Indian Defence Minister Nirmala Sitharaman, who is currently in France, meanwhile reiterated that the NDA government had nothing to do with Dassault choosing Reliance as its Indian offset partner.&nbsp;

"We are very clear: With the government of France, we agreed to purchase 36 Rafale aircraft in flyaway condition," Sitharaman said.

"And in an intergovernmental agreement, there are no mentions of any individual firms," she said.

"It is more for the companies which have chosen A, B or C as their partners to answer questions if there are any," she said.&nbsp;

The opposition has accused the Narendra Modi-led government of corruption in the Rafale deal.&nbsp;&nbsp;

An original deal to buy 126 Rafale fighter planes from France's Dassault Aviation had been brokered by India's UPA government in 2012. But Prime Minister Narendra Modi tore up that deal in 2015, signing a new government-to-government deal with then French president Francois Hollande to buy only 36 of the planes.&nbsp;

The opposition — led by Congress president Rahul Gandhi — says the NDA government is paying three times as much as the UPA government had agreed to pay for every Rafale.&nbsp;

Gandhi has also accused the government of crony capitalism.&nbsp;

The original Indian partner in the Rafale deal was the public sector HAL (Hindustan Aeronautics Ltd). But HAL was turfed out of the new deal, in favour of Anil Ambani's Reliance Defence — now of course Trappier says Reliance is not the only partner.&nbsp;

Reliance Defence was only 12 days old when it made its way into the deal. It also has no experience in the defence and aerospace industries.&nbsp;

While the government continues to say it was Dassault which chose Reliance Defence and that they had nothing to do with it, Hollande recently said — he was on a trip to India at the time — recently&nbsp;said it was the Indian government which had said Reliance was to be brought into the deal in place of HAL.&nbsp;

The Congress meanwhile has also alleged that Sitharaman's trip to France is an attempt at a cover-up.&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
The <a href="https://twitter.com/hashtag/GreatRafaleCoverUp?src=hash&amp;ref_src=twsrc%5Etfw">#GreatRafaleCoverUp</a> has begun. To try and show the deal is legit, Raksha Mantri will need to generate minutes of imaginary meetings held between the French &amp; our MOD &amp; both sides will need to agree on a common story to be spun to the media. 
 
RM left for France last night.
— Rahul Gandhi (@RahulGandhi) <a href="https://twitter.com/RahulGandhi/status/1050311182593286145?ref_src=twsrc%5Etfw">October 11, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

(With inputs from AFP)

Anil Ambani's Reliance Defence Ltd will get about 10% of the offset investments from the Rafale deal, Dassault Aviation CEO Eric Trappier told AFP in an interview.

Anil Ambani's Reliance Defence Ltd will get about 10% of the offset investments from the Rafale deal, Dassault Aviation CEO Eric Trappier told AFP in an interview. India is buying 36 Rafale fighter jets from France's Dassault Aviation. Under India's defence acquisition laws, a foreign company making a large sale to India has to invest 30 of the money paid to it back in India. This is called an "offset". "In full compliance with this regulation, Dassault Aviation therefore decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10% of these offset obligations," Trappier told AFP. "We're in talks with about 100 Indian firms, including around 30 with which we've already confirmed partnerships," Trappier added. Indian Defence Minister Nirmala Sitharaman, who is currently in France, meanwhile reiterated that the NDA government had nothing to do with Dassault choosing Reliance as its Indian offset partner. "We are very clear: With the government of France, we agreed to purchase 36 Rafale aircraft in flyaway condition," Sitharaman said. "And in an intergovernmental agreement, there are no mentions of any individual firms," she said. "It is more for the companies which have chosen A, B or C as their partners to answer questions if there are any," she said. The opposition has accused the Narendra Modi-led government of corruption in the Rafale deal. An original deal to buy 126 Rafale fighter planes from France's Dassault Aviation had been brokered by India's UPA government in 2012. But Prime Minister Narendra Modi tore up that deal in 2015, signing a new government-to-government deal with then French president Francois Hollande to buy only 36 of the planes. The opposition — led by Congress president Rahul Gandhi — says the NDA government is paying three times as much as the UPA government had agreed to pay for every Rafale. Gandhi has also accused the government of crony capitalism. The original Indian partner in the Rafale deal was the public sector HAL (Hindustan Aeronautics Ltd). But HAL was turfed out of the new deal, in favour of Anil Ambani's Reliance Defence — now of course Trappier says Reliance is not the only partner. Reliance Defence was only 12 days old when it made its way into the deal. It also has no experience in the defence and aerospace industries. While the government continues to say it was Dassault which chose Reliance Defence and that they had nothing to do with it, Hollande recently said — he was on a trip to India at the time — recently said it was the Indian government which had said Reliance was to be brought into the deal in place of HAL. The Congress meanwhile has also alleged that Sitharaman's trip to France is an attempt at a cover-up. The #GreatRafaleCoverUp has begun. To try and show the deal is legit, Raksha Mantri will need to generate minutes of imaginary meetings held between the French & our MOD & both sides will need to agree on a common story to be spun to the media. RM left for France last night. — Rahul Gandhi (@RahulGandhi) October 11, 2018 × (With inputs from AFP)

Reliance Defence not Dassault's only Indian partner in Rafale deal: CEO Eric Trappier

Dassault Aviation's joint venture with Reliance represents around 10 per cent of the offset investments under the Rafale jet deal, Dassault CEO Eric Trappier has said.&nbsp;

"We're in talks with about 100 Indian firms, including around 30 with which we've already confirmed partnerships," Trappier told AFP.

Separately on Thursday, speaking at a briefing in Paris, Defence Minister Nirmala Sitharaman reiterated the government's claim that it had no idea that Dassault Aviation would team up with Reliance Group, run by Anil Ambani.

Several reports say Dassault was forced to choose Reliance by Prime Minister Narendra Modi, despite its having almost no experience in the aviation sector.&nbsp;&nbsp; &nbsp;

On the eve of Sitharaman's visit, French investigative website Mediapart quoted the notes of a meeting between Dassault management and workers' representatives which described the choice of Reliance as "imperative and compulsory".

"We are very clear: With the government of France, we agreed to purchase 36 Rafale aircraft in flyaway condition," Sitharaman said.

"And in an intergovernmental agreement, there are no mentions of any individual firms," she said.

"It is more for the companies which have chosen A, B or C as their partners to answer questions if there are any," she said.

In a statement, Dassault released a transcript of what it said was Trappier's interview with AFP in which he was asked about the status of the offsets.

"Signing an offset contract is a requirement of Indian law (Defence Procurement Procedure). The implementation of offsets is an obligation and, under the Indian regulation, the choice of the partners belongs to us, Trappier was quoted as saying.

"In full compliance with this regulation, Dassault Aviation therefore decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10% of these offset obligations. We are in negotiations with about a hundred Indian companies and partnerships have already been concluded with about thirty of them," he was quoted as saying.

He said what is called "offset"&nbsp;in English is usually translated into French as "compensation"&nbsp;or "contrepartie". With regard to the staff and trades unions organizations, Dassault Aviation uses the term "obligation contractuelle d'offset"&nbsp;or "obligation contractuelle de compensation", he said.

Dassault negotiated for years with Hindustan Aeronautics Limited (HAL) for the order, with the jets being jointly built in India.

But those talks were cancelled after Prime Minister Narendra Modi took office, when he decided to purchase the jets directly from France.&nbsp;

Asked why Dassault chose Reliance over HAL as its partner, Trappier said Dassault Aviation decided to establish a long-term presence in India through DRAL, a joint enterprise in which governance is provided by an Indian Chief Executive Officer and a French Chief Operating Officer.&nbsp;

"Dassault Aviation therefore exercises technical and industrial control over the operations, applying its standards and its flexibility. This JV will produce parts for the Falcon 2000 and Rafale. The choice of the Nagpur site, in central India, was dictated by the availability of land with direct access to an airport runway, he was quoted as saying.&nbsp;&nbsp;

Dassault on Wednesday said it had "<a href="http://www.wionews.com/india-news/freely-chose-reliance-for-rafale-deal-dassault-aviation-issues-clarification-170776">freely chosen</a>" to form a joint venture with Reliance. But that stance was contradicted recently by former French president Francois Hollande, under whose watch the Rafale deal was signed.

Hollande said last month that France had "no choice" but to join with Reliance after it was pushed by the Indian government -- comments which were seized upon by Indian opposition parties.

Under Indian defence procurement rules, foreign companies winning contracts must "offset" or reinvest half the total value -- in this case around eight billion euros -- in joint ventures or purchases with Indian firms.

Dassault Aviation's joint venture with Reliance represents around 10 per cent of the offset investments under the Rafale jet deal, Dassault CEO Eric Trappier has said.

Dassault Aviation's joint venture with Reliance represents around 10 per cent of the offset investments under the Rafale jet deal, Dassault CEO Eric Trappier has said. "We're in talks with about 100 Indian firms, including around 30 with which we've already confirmed partnerships," Trappier told AFP. Separately on Thursday, speaking at a briefing in Paris, Defence Minister Nirmala Sitharaman reiterated the government's claim that it had no idea that Dassault Aviation would team up with Reliance Group, run by Anil Ambani. Several reports say Dassault was forced to choose Reliance by Prime Minister Narendra Modi, despite its having almost no experience in the aviation sector. On the eve of Sitharaman's visit, French investigative website Mediapart quoted the notes of a meeting between Dassault management and workers' representatives which described the choice of Reliance as "imperative and compulsory". "We are very clear: With the government of France, we agreed to purchase 36 Rafale aircraft in flyaway condition," Sitharaman said. "And in an intergovernmental agreement, there are no mentions of any individual firms," she said. "It is more for the companies which have chosen A, B or C as their partners to answer questions if there are any," she said. In a statement, Dassault released a transcript of what it said was Trappier's interview with AFP in which he was asked about the status of the offsets. "Signing an offset contract is a requirement of Indian law (Defence Procurement Procedure). The implementation of offsets is an obligation and, under the Indian regulation, the choice of the partners belongs to us, Trappier was quoted as saying. "In full compliance with this regulation, Dassault Aviation therefore decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10% of these offset obligations. We are in negotiations with about a hundred Indian companies and partnerships have already been concluded with about thirty of them," he was quoted as saying. He said what is called "offset" in English is usually translated into French as "compensation" or "contrepartie". With regard to the staff and trades unions organizations, Dassault Aviation uses the term "obligation contractuelle d'offset" or "obligation contractuelle de compensation", he said. Dassault negotiated for years with Hindustan Aeronautics Limited (HAL) for the order, with the jets being jointly built in India. But those talks were cancelled after Prime Minister Narendra Modi took office, when he decided to purchase the jets directly from France. Asked why Dassault chose Reliance over HAL as its partner, Trappier said Dassault Aviation decided to establish a long-term presence in India through DRAL, a joint enterprise in which governance is provided by an Indian Chief Executive Officer and a French Chief Operating Officer. "Dassault Aviation therefore exercises technical and industrial control over the operations, applying its standards and its flexibility. This JV will produce parts for the Falcon 2000 and Rafale. The choice of the Nagpur site, in central India, was dictated by the availability of land with direct access to an airport runway, he was quoted as saying. Dassault on Wednesday said it had "freely chosen" to form a joint venture with Reliance. But that stance was contradicted recently by former French president Francois Hollande, under whose watch the Rafale deal was signed. Hollande said last month that France had "no choice" but to join with Reliance after it was pushed by the Indian government -- comments which were seized upon by Indian opposition parties. Under Indian defence procurement rules, foreign companies winning contracts must "offset" or reinvest half the total value -- in this case around eight billion euros -- in joint ventures or purchases with Indian firms.

Reliance has 10 per cent of offset in Rafael deal: Dassault CEO

eric-trappier

Eric Trappier, News on Eric Trappier, stories on Eric Trappier, articles on Eric Trappier, Eric Trappier stories at Wion, Eric Trappier news, Eric Trappier latest news

eric trappier

Dassault CEO Eric Trappier responds to Rahul Gandhi on Dassault-Reliance joint venture

Price of 36 Rafale jets cheaper by 9%: Dassault CEO Eric Trappier

Reliance Defence not Dassault's only Indian partner in Rafale deal: CEO Eric Trappier

Reliance has 10 per cent of offset in Rafael deal: Dassault CEO