French Dassault Aviation and Reliance Group on Monday announced the creation of a joint venture in India. This new joint venture, called Dassault Reliance Aerospace, will support Prime Minister Narendra Modi’s Make in India and Skill India policies and develop major Indian programmes with high levels of technology transfer to benefit the entire aerospace sector.
The “Dassault Reliance Aerospace” Joint Venture will be a key player in the execution of offset obligations, as a part of the 36 Rafale fighter Jets purchase agreement at a value of Euro 7.87 billion, or about R59,000 crore signed between France and India last month.
The agreement includes a 50% offset obligation which is the largest ever offset contract in the history of India. The main point of the offset agreement is 74% of it has to be imported from India, which means direct business worth around R22,000 crore. The offset, spread over seven years, will be finalised soon.
There is also a technology-sharing component, which is being discussed with the Defence Research and Development Organisation (DRDO).
The proposed strategic partnership between Dassault and Reliance will also focus on promoting Research and development projects under the IDDM programme (Indigenously Designed, Developed and Manufactured), a new clause in the amended Defence Procurement Policy that was released earlier this year.
“The formation of this Joint venture with Reliance Aerospace led by Anil Ambani’s Reliance Group illustrates our strong commitment to establish ourselves in India and to develop strategic industrial partnerships under the “Make in India” policy promoted by the Indian government”, declared Eric Trappier, Dassault Aviation chairman & CEO.
“We are delighted to partner a world leader in aviation like Dassault Aviation, and a visionary leader like Eric Trappier. 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.
Other companies involved in the Rafale deal include French firms MBDA and Thales, besides Safran, which too will be part of the overall offset obligation. The Dassault Reliance Aerospace joint venture will be a key player in the execution of offset obligations, a joint statement by the companies said.