Rafale deal comes with 50% offset clause

Reacting to Congress charge, Defence Ministry sources said as per contract, details of Indian offset partners will be confirmed by Dassault Aviation either at the time of seeking offset credits or one year prior to discharge of offset obligations. So far vendor has not submitted any proposal for offset discharge, they said.

As per the Government to Government deal for procuring 36 Rafale jets, the off-set is pegged at 50 per cent of the total cost of the contract. It is nearly Rs 60,000 crores and Dassault is contract bound to plough back 50 per cent of the money into Indian industry. The objective is to give a boost to the domestic industries to manufacture world class defence equipment in collaboration with the foreign vendor.