Official Spokesperson (Shri Vikas Swarup): Good afternoon friends and welcome to this press briefing. First of all my apologies for this delayed start, it was because of circumstances beyond our control. Basically the
talks with France overran and that is why we had to schedule them at this point in time.
As you know, a Joint Statement has been issued between India and France. Also a Joint Statement on Counterterrorism has been issued and uploaded. Both of them are available on our website. To brief you in greater detail on the very productive discussions that
were held today between President Francois Hollande and Prime Minister and the two Delegations, I have with me Foreign Secretary Dr. S. Jaishankar, and Joint Secretary (Europe West) Shrimati Nandini Singla. I will now hand over to Foreign Secretary.
Foreign Secretary (Dr. S. Jaishankar): We have just finished the talks. Our Prime Minister and President Hollande are on the way to Gurgaon for the International Solar Alliance launch. Let me give you a sense of the day
today and perhaps a little bit yesterday as well.
The President and the Prime Minister had sort of restricted talks which lasted a little more than an hour, and then delegation-level talks which went on for about an hour and a half. Yesterday of course as you know, Prime Minister received the President in
Chandigarh. I think most of yesterday’s programme is already in the news. The business events for the visit took place yesterday in Chandigarh. I think most of you saw a very impressive turnout of the corporate sector.
Today in the talks that took place, on our side Prime Minister was accompanied by the Foreign Minister, the Defence Minister, in the delegation-level talks by the Science and Technology Minister and the Environment Minister as well as well as by senior officials.
On the French side actually again there was a very impressive Ministerial presence. The Foreign Minister, the Minister for Ecology, Sustainable Development and Energy, the Minister of Finance, the Minister of Defence, the Minister for Decentralisation and
Civil Services, and the Minister of Culture, all accompanied the President. We have released a Joint Statement as well as, as JS(XP) told you, a separate statement on counterterrorism since that was an important aspect of the agreement.
If I could just walk back a bit, you know that President Hollande is here as the Chief Guest for the Republic Day Celebrations tomorrow. This is the fifth time that France would be the Chief Guest and President Hollande himself has been here earlier on a visit
in 2013. Tomorrow we will have a French military contingent marching for the first time in the Republic Day. That is something which is different from the past.
Prime Minister and President had met a number of times in the recent past. They were together at the UN General Assembly meeting in September and then of course at the COP21 meeting on climate change in November/December.
France is the original strategic partner of India. It was the first country that was so designated. We have very close relations with them in the field of defence, nuclear energy, space, these are all areas of long-standing cooperation with them. We also have
a very strong convergence of views with France on political issues, both regional political issues and global political issues. France has been supportive in our quest for a UN Security Council permanent seat. It is also a very strong supporter of our membership
of export control regimes. We do work with France in other international forums. In fact, today climate change, G20, financial issues, all of them came up for discussion during the talks.
On the defence side, they have been an exercise partner for many years now. We hope that French companies would be among the leading companies to take advantage of the Make in India where defence is concerned, generally where the economy is concerned but particularly
where defence is concerned, and certainly their response has been very encouraging in that regard.
Also on the field of defence, today I think you would have heard at the press statements both the Prime Minister and the President conveying their welcome of the conclusion of the intergovernmental agreement on the acquisition of the Rafaels, though some financial
issues in that regard remain to be closed.
On the nuclear side, I think the big development is the fact that we have agreed that at Jaitapur we will collaborate to construct six nuclear power reactors. The earlier understanding was for two. Again if you will recall, when Prime Minister had gone to France
last year we had some important agreements on localization of technology in the nuclear sector. So, the two leaders looked at that. They were quite pleased with the progress on that. They set some timelines to move on the various nuclear understandings that
we have.
I mentioned to you, climate change was an important subject of discussion. France is a founding partner of India both in the International Solar Alliance as well as in an Innovation Mission that we announced during the course of COP21. The French are committing
Euro 300 million through projects in the International Solar Alliance.
We had a number of business agreements. All told actually between what was signed in Chandigarh and today, we had a total of I think 30 agreements. Today we had 14 between various agencies and institutions and yesterday we had the balance pertaining to a range
of activities from smart cities, wind energy, urban development.
There was some discussion on the Railways as well today. Again the French have two important commitments. One is, they are partners in a joint venture which pertains to the manufacturing of electric locomotives in Madhepura in Bihar and the other one is their
commitment to the upgradation of the Delhi-Chandigarh line to a higher speed quality.
On the space side, again we did three agreements today. One was an implementing agreement relating to a payload that will be carried by one of our satellites Oceansat-3, one related to a future joint Thermal Infrared Earth Observation Mission, and the third
one related to France’s participation in our next Mars Mission.
That I think broadly sums up what happened yesterday and today. For us, again as I said, France is a very important partner, very active in critical areas of national security, of technology. Again if you look at the big programmes today for modernization and
change in India, whether it is Smart Cities, Digital India, Ganga Rejuvenation, Make in India, I think in some form today in every one of these programmes you could see French interest, French involvement. Some of them had been already worked upon, some of
them were added on today, some were discussed possibly for future action.
All in all, I would say a very important, very significant, very impactful visit. And of course we will have the pleasure of the French President’s presence tomorrow at the Republic Day.
Thank you. I will be delighted to take questions.
Question: Sir, the French President mentioned in his statement to the media that as far as the price negotiations or the financial issues related to the jet deal are concerned it will take a few days. It was exactly translated
as a couple of days. Is there a timeline and one that is soon?
Foreign Secretary: I think essentially what you heard the two leaders say was that on this important but somewhat complicated issue they have been able to reach agreement in very large areas, the non financial areas, and
that on the financial side we have yet to reach full agreement and that people are working on it. Obviously there is interest on both sides of doing it as soon as possible. So there is a sort of an element of urgency and a desire to complete this as soon as
possible. But beyond that, at this stage I do not think it would be prudent for me to say anything.
Question: What about financial aspects relating to the nuclear deal? On the Jaitapur power plant, has the cost been finalised?
Foreign Secretary: At the moment we are still in the process. As you know, a sort of early works was agreed to some time ago. Right now we are looking at a larger commitment which obviously makes the whole project more
viable. But I think it is early days for that.
Question: Sir, on the Rafael Deal, the Joint Statement mentions that an intergovernmental agreement has been concluded except for certain cost issues. But the agreement was mentioned as an MoU at the function. I just wanted
to read the fine print. Is it just an MoU or has an IGA been inked? Without cost issues being resolved, what is the sanctity of such an IGA?
Foreign Secretary: There has been, as you know, considerable progress in these negotiations since last year and it was important at this juncture that the progress be conveyed accurately and positively and that is exactly
what was the intent of the MoU and what is there in the Joint Statement. So, essentially we have more or less, because when you do a text then there is legal scrubbing, there is always a bit of a time lag, not just on defence issues even some time ago I think
we were discussing some nuclear related matters and it was a similar situation where you may agree on closing the text but you still need legal scrubbing and the detailing that needs to be done, except in this particular case the financial side of it also
has to be agreed upon.
Question: So, is it an MoU or is it an IGA which has been inked?
Foreign Secretary: There was an MoU which was signed between the two Defence Ministers pertaining to the IGA.
Question: Since an IGA has been signed between the two countries, do we now understand that the French Government will directly negotiate with the Indian Government on pricing, or will the manufacturer still play a role
in the financial aspects?
Foreign Secretary: Obviously the manufacturer makes the plane and has a key view or position on the financing, but at the same time it is an intergovernmental agreement.
Question: Will there be a Make in India element to the Rafael deal either through offsets or in the future through transferring of the assembly line to India?
Foreign Secretary: My understanding is that there will be offsets in the agreement.
Question: …(Inaudible)…
Foreign Secretary: As of now what we are discussing is flyaway condition.
Question: After India could not decide upon 126 MMRCA, Prime Minister has conveyed the decision of India that we will be purchasing 36 Rafaels. Our understanding was that only financial aspects now remain to be solved.
Now if we have entered into this IGA, can you elaborate what are the non-financial aspects which you have agreed upon?
Foreign Secretary: This is frankly a fairly technical matter. I just can give you a common sense view which is really what I have which is that if you are buying a plane, obviously you have to agree on what is the plane, what are the specifications of
the plane, what are the weapons and the capabilities of the plane, what would be the maintenance of the plane. I think these are all technical issues that need to be settled.
Question: The number of 30 or 36 aircraft was mentioned earlier. Is there going to be a clause in the agreement that leaves open the future possibility of more purchases being made?
Foreign Secretary: Again, I read to you what is in the Joint Statement. It refers to the acquisition of 36 Rafael fighter aircraft.
Question: …(Inaudible)…
Foreign Secretary: I read to you what is in the Joint Statement. I would suggest you read it as well.
Question: Just for more clarity, you said this is an MoU. After this will be the IGA and then the commercial contract? How does it work?
Foreign Secretary: This is the MoU and when the financial parts of it are settled then obviously the IGA in its entirety is concluded.
Question: Sir, you mentioned about six reactors at Jaitapur. Was the original understanding in 2010 not for six reactors to be set up at Jaitapur?
Foreign Secretary: I think we just initialled today, we revised the MoU between EDF and NPCIL for the construction of the six.
Question: This is about the nuclear agreement between India and France. Is France happy with the civil nuclear liability law in our country? And what about the pricing of the nuclear energy going to be considering that
solar power per unit cost is now down to Rs.4 plus? Is this being taken up by the Indians with our nuclear collaborators?
Foreign Secretary: I think you would see in the Joint Statement that France does welcome the decision by Government of India to ratify the Convention on Supplementary Compensation for Nuclear Damage. I think that should
answer the first part of your question.
The second part of your question in terms of the cost of nuclear power, obviously nuclear power projects are cleared and entered into only when we are convinced that the cost of the power that they would produce would be viable. So, I think that is the context
in which you should see the other developments which are taking place in the nuclear sector.
My final observation would be - it is my understanding, I am not an energy specialist - that nuclear and solar are not a sort of either-or; their role in an energy mix is very different.
Question: The separate Joint Statement on Counter Terror in paragraph 8 talks specifically about decisive action to be taken by Pakistan on Lashkar-e-Tayyiba, Jaish-e-Mohammad, Hizb-ul-Mujahidden amongst others. We understand
that of course these statements are strong by themselves. But how do you really sort of see them translating in terms of action at the international stage, in terms of more pressure maybe at the level of the UN France applying those pressures along with other
countries? What is the sense that you get in a way in terms of increasing the pressure on Pakistan? And in what ways does India plan to increase its counter terror cooperation or in specific intelligence sharing with France?
Foreign Secretary: I think if you watch developments of the last month, you would see that a number of countries and a number of leaders have spoken up on the issue of terrorism as it impacts on India, including yesterday.
So, I would say we have been quite effective in getting the international community to look at this question in the manner in which they should have been looking at it for many many years. That so many countries so forcefully and so quickly actually issued
statements even after the Pathankot attack, itself to my mind points to the direction where the world is going.
We have had a longstanding initiative on the Comprehensive Convention on International Terrorism (CCIT). And again you would see that countries which hitherto held back have today shown degrees of support for it. So, my sense is that the world today regards
this much more seriously than it did, that there is global pressure on countries that in some manner collaborate or connive at acts of terrorism, I think the level of tolerance in the world for terrorism is going down, and these statements to my mind have
considerable value in bringing out that message.
Question: Sir, again this is on Rafael deal. A Joint Commission was already working on pricing of the Rafael aircraft. Is there a very huge gap between their demand and our commitment or our proposal? Or will there be any
fresh Committee to decide over the prices again?
Foreign Secretary: I can only tell you that obviously we reached agreement on many aspects but not on the financial aspects. Exactly what is the state of the financial negotiation is not something I would either know or
share.
Question: Sir, with reference to the agreements initialled yesterday, do you have any estimate as to what those agreements would be worth in terms of commercial deals, even a ballpark estimate?
Foreign Secretary: Not off the top of my head. Let me see if we can get back to you on that. I would not have a top of the head number. Let us try and get you something on that.
There are two points though which I would like to make. One, there was very strong appreciation expressed yesterday by French companies and actually by French officials as well about the easy to do business, progress on that side. The general sense was that
in the last year they definitely could sense that it was easier to do business. The second that overall the French have actually been among the more enthusiastic in responding to Make in India, that if you actually look at the companies which are stepping
forward and discussing plans I think on our side there is an appreciation that French companies are very aggressive or responsive in that regard.
Question: Sir, given that France has a large minority population and there is stress on individual freedom, do they want to understand or is there a sense that they would like to learn from us how we have ensured or prevented radicalisation?
Foreign Secretary: I think every country is unique. Obviously when leaders meet or governments meet or officials meet, they exchange experiences but at the end of the day their situation is their situation, our situation is our situation. I am not saying
that there are not any carryovers but I also think what might be an effective solution here may not completely apply there. But this is a subject, that whole space of counterterrorism, counter radicalisation, counter extremism is something where actually we
actively engage with the French.
Question: Just coming back to Jaitapur, you said that yesterday only that MoU has been revised.
Foreign Secretary: Today.
Question: It has been revised and six reactors now will be commissioned. Can you throw some more light on how this revision and increasing the number of reactors came about?
Foreign Secretary: I think there is a broad direction we are going and the direction really stems from our INDC and from the implications of the INDC for the nuclear energy sector. If the country is going to have 40 per
cent of its energy in generation capacity coming from non-fossil fuel sources, clearly the nuclear component of the energy mix will have to be expanded. Our three important partners in nuclear traditionally have really been Russia, France and the United States.
So, it fits in very well with a country which expects to see that its civil nuclear energy programme will be …(Inaudible)…
Official Spokesperson: I think with that we have exhausted all the questions. Thank you all very much. This concludes the press conference.
(Concluded)