Indian Reliance Group and Dassault Aviation have announced a joint venture (JV) to execute $3.3 billion worth offset contract as part of the Rafale fighter jet deal.
The announcement of the JV, Dassault Reliance Aerospace, comes within days of India and France on September 23 signing an agreement for 36 Rafale fighter jets at a value of euro 7.87 billion.
The agreement includes a 50 per cent offset obligation. The main point of the offset agreement is 74 per cent of it has to be imported from India, which means direct business worth around Rs 22,000 crore ($3.3 billion).
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). 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 Monday.
The development has come as a boost to the Reliance Group, which entered the defence sector only in January 2015.
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).
"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 develop strategic industrial partnerships under the Make in India policy promoted by the Indian government," Eric Trappier, Dassault Aviation Chairman and CEO said.
Fresh from signing a contract to supply 36 Dassault Rafale jets to India, France is looking at Malaysia as the next possible buyer of its multi-role fighter. Malaysia and Canada have competitions to acquire new fighter aircraft in which Dassault is a bidder but Dassault CEO Eric Trappier is more optimistic on the Asian country
India has bought 36 Rafale fighters for $8.8 billion costing an average of $240 million apiece with weapons, spares and support which is in comparison to the price of a fifth generation F-35 fighter aircraft
Thales welcomed Indo-French signing of the deal for the purchase of 36 Rafale fighters asserting the equipment used in the fighters made by the French company. Thales provides radar, electronic warfare systems, optronics and communication navigation and identification system (CNI) and other components to Dassaults Rafale fighter aircraft
Reliance Infrastructure (RInfra)-promoted Reliance Aerostructure and Dassault Aviation have formed Joint Venture known as 'Dassault Reliance Aerospace Limited'. 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 Dassault Reliance Aerospace Limited DRAL
Reliance has signed an agreement with the American Navy for repair and alteration services for warships of the largest forward-deployed Seventh Fleet operating in the Western Pacific and Indian Ocean. The Seventh Fleet has roughly about 5070 ships and submarines, 140 aircraft and about 20,000 sailors under its command, Tribune India reported today
Reliance Defence and Engineering (RDEL) has signed Rs 916 crore contract with Defence Ministry for design and construction of 14 fast patrol vessels for Indian Coast Guard. RDEL emerged winner through a competitive bidding process undertaken by Ministry of Defence with participation from almost all the private sector and public sector shipyards namely, L&T, Cochin Shipyard Ltd, Goa Shipyard Ltd, Garden Reach Shipbuilders & Engineers Ltd (GRSE), the company said in a statement Monday
Fair trade regulator, Competition Commission (CCI) today approved the proposed joint venture between Indian Reliance Aerostructure and French Dassault Aviation. The proposed combination relates to the setting up of a joint venture between Reliance Aero and Dassault -- Dassault Reliance Aerospace Limited, in which Reliance Aero would hold 51 per cent shares, with the remaining 49 per cent to be held by Dassault
Reliance Defence and Engineering has considered to joint venture with Kalashnikov Israel for manufacturing Kalashnikov class of weapons for Indian armed forces. Kalashnikov Israel, a subsidiary of the CAA Company of Israel, has agreed to jointly make Kalashnikov and other small arms with Reliance Defence
Indian Air Force(IAF) is planning to acquire 12 high-powered air defence radars that are able to detect targets at 30km altitude to counter missile threats. The move is intended at combating increasing obsolescence in the country's air defense system and plug the gaps,
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