The Reliance Infrastructure (RInfra)-promoted Reliance Aerostructure’s (RAL’s) joint venture with Dassault Aviation — Dassault Reliance Aerospace (DRAL) — has been incorporated.
The Reliance Infrastructure (RInfra)-promoted Reliance Aerostructure’s (RAL’s) joint venture with Dassault Aviation — Dassault Reliance Aerospace (DRAL) — has been incorporated. RAL will have a 51% shareholding in the JV while Dassault Aviation (DA) will hold 49%.
Eric Trappier, chairman of Dassault Aviation France, will be the chairman, and Anil D Ambani, chairman of Reliance Group, will be the co-chairman of DRAL, Reliance Infra announced at the Aero India 2017, on Thursday.On September 23, 2016, India and France had signed a purchase agreement for supply of 36 Rafale fighter jets at a value of 7.87 billion euros, or about R60,000 crore. The contract includes a 50% offset obligation to the tune of approximately R30,000 crore, which is the largest ever offset contract in the history of India. DRAL will be a key player in the execution of offset obligations.
DRAL has finalised the infrastructure requirements at the Dhirubhai Aerospace Park at Mihan, Nagpur, and the construction work for the greenfield facility will start in May 2017, and production by end-2017.
DRAL will execute the programmes in phases, with Phase I resulting in the generation of more than 700 highly-skilled direct jobs and 2,800 indirect jobs. It will support the government’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 proposed strategic partnership between Dassault and Reliance will also focus on promoting research and development projects under the Indigenously Designed, Developed and Manufactured (IDDM) programme, a ministry of defence initiative.
About 300–400 Indian companies will be part of the Reliance Defence supply chain for various projects, including Rafale offsets. A large percentage of this will be MSMEs while more than 150 such companies have already been enrolled. Reliance is meeting additional 40 companies at the Aero India, the statement added.