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CAG report on Rafale raises concerns on Letter of Comfort over sovereign guarantee

Updated : February 13, 2019 02:43 PM IST

The report, tabled in Parliament on Wednesday, noted that the 2007 UPA deal included a 15 percent bank guarantee against advance payments.
India for the first time signed an Intergovernmental Agreement (IGA) with France to procure 36 Rafale fighter jets. It has earlier signed similar IGAs with the US, the UK and Russia.
Since about 60 percent of advance payments were to be made to the French vendors, the Ministry of Law and Justice advised that a government/sovereign guarantee should be requested in view of the value of the proposed procurement, the report said.
CAG report on Rafale raises concerns on Letter of Comfort over sovereign guarantee
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