Anil Ambani’s Reliance Group has emerged as the preferred partner for the formation of a joint venture with Dassault Aviation of France to execute the offsets for the recently-concluded deal for 36 Rafale fighter jets.
The French aviation company recently won a contract for supplying Rafale fighter aircraft to India for ₹60,000 crore with 50 per cent offset clause. The new joint venture, to be called Dassault Reliance Aerospace, will focus on aerostructures, electronics, and engines. Reliance Group said this contract worth ₹30,000 crore is the largest offset contract to be executed by any defence company in India till date.
To set up the joint venture company, an integrated facility is proposed to be set up at Reliance Special Economic Zone (SEZ) in Nagpur. Work is expected to begin in the next couple of months and production within 12 months. Share price of Reliance Defence and Engineering shot up 8.59 per cent to Rs61.30 on the BSE at close on Monday.
The proposed strategic partnership between Dassault and Reliance may also focus on promoting research and development projects under the IDDM (Indigenously Designed, Developed and Manufactured) programme, according to a press statement issued in Mumbai.
“The formation of this joint venture with Reliance Aerospace illustrates our strong commitment to establishing ourselves in India and develop strategic industrial partnerships under the ‘Make in India’ policy promoted by the government,” said Eric Trappier, Chairman & CEO, Dassault Aviation. The joint venture will partner with multiple micro, small and medium enterprises for sourcing and contracting.
“The aim is to build up the integrated facility so that we can progressively bring up the Make in India components in the Rafale jet to 50 per cent,” a senior executive associated with the project said. “This is a transformational moment for the Indian aerospace sector and for Reliance Infrastructure’s subsidiary Reliance Aerospace,” said Anil Ambani, chairman of the Reliance Group.