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In contracts signed with Rosoboronexport, the requirement of bank guarantees was waived off in view of assurances provided through a ‘Letter of Comfort’ from the government of the Russian Federation, the government said, adding, “Similarly, in Foreign Military Sales (FMS) with the US government, no sovereign/bank guarantee is signed.”Further, in the Rafale procurement, the French government had proposed to provide ‘outstanding guarantees’ as per the IGA and a ‘Letter of Comfort’ from the French Prime Minister, the government noted.
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Though the price discovery of 126 MMRCA was determined out of a global competitive tender, the reasonability of the price for Rafale through the IGA was established by CAG audit, the government pointed out.
While the past process of 126 MMRCA could not come to a conclusion in 15 years, the Rafale deal was concluded in over a year.
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