Bengaluru: Expressing his displeasure over the Centre cancelling the Rafale fighter jet deal inked by the previous UPA government at the Centre, Large and Medium Industries Minister Mr R.V. Deshpande said that it may affect the future of HAL itself.
Speaking to reporters here on Thursday, Mr Deshpande said that he strongly opposed the Centre's decision, as it might affect HAL's future.
The UPA government had signed the MoU for the Medium Multi-role Combat Aircraft (MMRCA) involving $ 12 billion, to purchase 126 aircraft.
As per the MMRCA project, HAL was to build 108 out of the total 126 Rafale jets locally, with the first batch of 18 fighter jets directly delivered from France in flyaway condition. Now, the government would be purchasing only 36 aircraft. Mr Deshpande said that the loss of technology transfer to India would have an adverse effect on the future of HAL.
Admitting that implementation of GST has cast a dark spell over the industrial sector of the state, Mr Deshpande said, "GST has obviously affected the profit of industries. However, it is likely to be back on track in the coming days.
"Post GST, the government has shut all check-posts. If any check post is operational, it might belong to the transport and forest departments. Going by reports of our officials, all check posts belonging to commercial taxes department have been shut." he said. This is contrary to Chief Minister Siddaramaiah's statement that all check posts in Karnataka have been closed.
