Welcome to RMCTalks – My Weekly Newsletter.
5 Short Stories of the Week
M: Shiv Sena breaks 30-years old friendship with BJP to form State Govt; Sharad Pawar plays the masterstroke; Governor enforces President Rule in the state
T: The Nation celebrates Guru Nanak Devji’s 550th Birth Anniversary
W: CJI Office comes under RTI Act
T: The combined losses of Vodafone-Idea and Airtel at Rs.74000 Crore
F: ISRO planning Chandrayaan 3 with a lander and rover by November 2020
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Explained: The Curious Case of Rafale Deal
Image Source: Global Village Space
What: Rafale – a multirole fighter aircraft. Deal – procurement of 36 jets for a whopping €7.8 Billion. Since the day the deal has happened, it’s become a major bone of contention between the ruling and opposition parties of India. And eventually turned into a “Chowkidar Chor Hai” campaign during the 2019 Indian democracy elections.
But as recently as 3 days ago, SC dismissed its review plea. And thus put an end to the dogfight. To understand it better, let’s dig further into its history.
2003: Indian Air Force (IAF) started knocking Govt.’s doors to buy new fighter jets. Those were the days when Lt. Atal Bihari Vajpayee used to be our PM. A year later, BJP lost the elections.
2004 – 2014: Congress stayed in power for 10 years. On the basis of a tendering process, it chose Dassault in 2007 to supply 126 Rafale jets. As per the deal, 18 would be manufactured by Dassault in France. While the rest, 108, would be manufactured in India. For which, Dassault would take no responsibility. Neither it would provide any weapons nor manpower. Just technology.
But this deal wasn’t exactly a deal. Just a mere talk. Neither Dassault agreed to the pricing nor signed the contract. Neither a single jet was ever bought nor supplied.
2016: After a thumping majority in 2014, Modi Govt. came to power. And instead of Dassault, it directly negotiated with French Govt for 36 jets. As per the deal, Dassault would manufacture all 36 jets in France. It would provide a modern combat facility. Weapons. Insurance. Protection cover. Defense equipment. Maintenance. Manpower. Free visits. And much more.
Allegations: As per the accusations by RaGa:
- The UPA finalized the deal in Rs.560 Cr per jet while Modi Govt. would pay Rs.1700 Cr
- Modi Govt. seized the manufacturing deal from HAL and put it in the coffers of Anil Ambani’s Reliance
Reality: As per my understanding:
- The UPA’s pricing seemed cheaper as it would pay only for 18 jets. While a tiny and unsubstantial amount of money would be spent for the rest of 108. That too for technology. The labor, weaponry, protection, security cover, and other important elements would be taken care of by India itself.
- On the contrary, Modi Govt.’s Rs.1700 Cr per jet would include all 36 weaponized jets solely manufactured by Dassault.
- Averaging the deal amount during UPA tenure for all 126 jets (not 18) would turn out to be around Rs.560 Cr as on today.
- The difference in pricing is due to the timeline. Proposed during UPA rule in 2007 turned expensive in 2016 due to an increase in Defense equipment pricing and exchange rates. All due to a huge gap of around 10 years.
- As per the negotiations between 2 countries, the French Govt. would provide an offset. As per this, it would invest 50% of the amount back in India. On behalf of it, Dassault would collaborate with the companies that deal in the defense sector. Out of 70, it chose Reliance based on the legal and professional process. And discarded the other 69 including HAL.
Disclaimer: If you find it factually incorrect, please feel free to comment or drop me a message 🙂
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Connect The Dots
Who is this Intelligent Fanatic?
- Dot 1: He learned to code at the age of 10. By the time he turned 11, he developed a video game – Blastar. At 12, he sold it to PC & Office Technology Magazine for $500.
- Dot 2: Throughout his childhood, he was bullied. He lost consciousness when a group of school mates smashed his head into the pavement. As a consequence, he was hospitalized and went through a nose-job surgery.
- Dot 3: In 1995, after a stint of just 2 days, he dropped out of his Ph.D. program at Stanford University. And co-founded a web software company, Zip2, which he sold to Compaq for $340 Million in 1999.
Still clueless? Please scroll down for the answer 🙂
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Start-up Story: A Housewife Who Earns Rs.5-6 Lakh Every Month by Selling Handbags on Flipkart
Image Source: WeWork
Name: Ritu Kaushik. Occupation: Housewife. Passion: Designing Handbags. And she is the one who has transformed her passion into a multi-million rupees online venture. Every month, she earns revenue of Rs.5-6 Lakh from Flipkart by selling her handbags on the e-commerce platform.
And it all began in 2016 when she started using Flipkart marketplace to sell her bags. At 31, with 2 kids to take care of, she went back to college, earned her degree, and took a giant leap to start her venture – Ritupal Collections. Until then, the chapter was closed. The curtain was down.
“I transformed my passion into a business”
At present, her customer base is concentrated in South India. And working towards building it in Eastern as well as Western parts of India.
She hails from a place where patriarchal society dominates the land. And truly is an epitome of Women Empowerment.
Well, if this doesn’t motivate you to start something of your own, I don’t know what will. Look no further. Start Small, Start Now. This is a better version than saying – Start Big, Start Later.
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Why You Should Write?
Writing is a phenomenal invention. It’s one of the best ways to communicate ideas to the masses. Lt. Bal Thackrey used to do it through his magazine – Samna. Lt. DMK leader M. Karunanidhi in Murasoli.
We too can do it through:
By writing, we can:
- Put down our untangled thoughts in a clear manner
- Consolidate years of learning at a single place
- Teach our decades of experiences in just a few hours
What else can be better than this? People out there are looking for your quality ideas. Explore interesting ideas. Read about them. Write every day. 50 words. 100 words. Consolidate and post every weekend.
Believe me, it works!
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Tweet: Don’t Panic, Keep Buying
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3 Weekend Reads
Most of history is made by those who mastered the art of doing nothing when nothing needed to be done. This is especially true for business leaders and investors. Their do-nothingness can be more important than their inclination to do something. We just pay more attention to the somethings because they’re more obvious and exciting.
Everything is worry-free. I know there’s enough. And the very feeling of knowing that I have enough warms my heart and soul every single day. It is a feeling of liberation and freedom and a glider that keeps me soaring high above the bullshit of worry or having to sell out my free time for activities that aren’t really helping anyone. To me, this feeling is the very core of being a Rich Person.
The reality is life is a single-player game. You’re born alone. You’re going to die alone. All of your interpretations are alone. All your memories are alone. You’re gone in three generations and nobody cares. Before you showed up, nobody cared. It’s all a single-player game.
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Answer to Connect The Dots: Well, he is Elon Musk. The co-Founder and CEO of Tesla Inc. With a net worth of $22 Billion, he was ranked 1st on the Forbes list of Most Innovative Leaders in 2019.
That’s all for this week, friends. Have a lovely week ahead 🙂
Cover Image: News18
Dhruv Girdhar | RichifyMeClub
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