Rel Group, Dassault tie up after Rafale deal
THRUST Dassault to invest ₹30,000 cr as part of IndoFrance deal
MUMBAI: Reliance Group said on Monday it has formed a joint venture with Dassault Aviation SA to help the French company spend up to ₹30,000 crore that it must invest in India as part of a recent fighter jet deal clinched between both the governments.
India, the world’s largest arms importer, requires foreign defence companies to invest a percentage of the value of deals that they have been awarded into India to help the country build its own manufacturing base and wean itself off imports.
Dassault agreed to invest 50% in so-called offsets of the $8.7 billion (₹58,300 crore) deal it signed with New Delhi on September 23 to supply 36 of its Rafale fighter jets. Reliance said the offset contract is India’s biggest ever.
“The formation of this joint venture with Reliance Aerospace illustrates our strong commitment to establish ourselves in India and develop strategic partnerships under the Make in India policy promoted by the Indian government,” said Eric Trappier, chairman and CEO, Dassault Aviation.
The proposed partnership will also focus on promoting research and development projects. “This is a transformational moment for the Indian aerospace sector and for Reliance Infrastructure’s subsidiary Reliance Aerospace,” said Anil Ambani, chairman, Reliance Group.
Delivery of the Rafale jets is expected to begin in 36 months.
Shares of Reliance Infrastructure rose 8% on the BSE, while that of Reliance Defence and Engineering gained 8.6%30.
A person familiar with the agreement said part of the ₹30,000 crore in offsets would be spent directly on Reliance manufactured products, and part would be spent through other Indian manufacturers, depending on which company could best carry out the work.
Other Indian companies with interest in defence and aerospace include Tata Group, Mahindra Group and L&T.
WITH REUTERS INPUTS