Here is the text of the suo-motto statement made by Raksha Mantri Shri. Pranab Mukherjee in Lok Sabha today regarding the Scorpene Submarine Project
“A section of the Press had published certain reports inter alia alleging the involvement of middlemen and payment of commission in the Scorpene Contract stating that a Rs. 16,000 crores contract was signed with France and that an extra amount of Rs. 4,500 crores was paid to the French firms than what was earlier negotiated. Appropriate rejoinders were sent to the magazine on 14 Feb. 2006. An unstarred question no. 1689 was replied to in Rajya Sabha on 8 March 2006 on the subject of "Purchase of Submarines".
The allegations have been repeated on 20th March 2006 by the leaders of opposition in Lok Sabha and Rajya Sabha and a former Defence Minister. The facts of the case are contrary to these allegations.
No contract or contracts were signed with French firms for Rs. 16,000 crore for the Scorpene project. The total cost of the two contracts signed with the two French firms, M/s ARMARIS and MBDA, for the project is Rs. 7,197 crores.
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