BANGALORE: Karnataka's Large and Medium Industries Minister R.V. Deshpande on Thursday expressed fear that cancellation of the Rafale deal signed by the erstwhile UPA government may affect the future of Bangalore-based defence public sector undertaking, Hindustan Aeronautics Limited (HAL).
Addressing a press conference here, he pointed out that the earlier deal had made HAL a partner of French-based Dassault Aviation to make Rafale aircraft in India through transfer of technology clause.
He alleged that the new deal signed by the Narendra Modi government was not beneficial to the HAL as the French aircraft manufacturer had now refused to transfer technology to the PSU.
“The cancellation of the old deal and entering into a deal is very unfortunate,” he said, while maintaining that the earlier deal would have resulted in much benefit for Karnataka and HAL in terms of employment generation.
“We strongly oppose the Centre’s decision as it may affect HAL’s future,” Mr. Deshpande said and urged the Centre to reconsider its decision.