MUMBAI: Reliance Aerostructure Limited’s has incorporated a 51:49 joint venture with Dassault Aviation, with the aim of becoming a key player in executing the offset obligations arising out of the 7.87 billion euro deal for Rafel fighter jets.
The joint venture, named Dassault Reliance Aerospace Limited (DARL), will have Eric Trappier, Chairman of Dassault Aviation France as its chairman, and Anil Ambani, chairman of Reliance Group as its co-chairman.
India and France signed a purchase agreement for supply of 36 Rafale fighter jets for 7.87 billion euros in September last year and the contract includes a 50% offset obligation about ₹30,000 crore, the largest ever offset contract in India. DRAL will aim to grab a major size of the offset business, including components and parts for the jets.
DRAL has finalized the infrastructure requirements at Dhirubhai Aerospace Park at Mihan, Nagpur and the construction work for the greenfield facility will start in May 2017, and production by end-2017, said a company statement. It added that the joint venture will execute the programs in phases, with Phase I resulting in the generation of more than 700 highly-skilled direct jobs and 2,800 indirect jobs.
DRAL will support Government of India’s “Make in India” and “Skill India” policies and develop major Indian programs 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 IDDM program (Indigenously Designed, Developed and Manufactured), an initiative of Indian Defence Minister Manohar Parrikar, according to the statement.
