Dassault To Emerge As The Biggest Investor In India's Defence Sector Following Rafale Deal

  • Our Bureau
  • 03:34 PM, June 9, 2017
  • 3377
Dassault To Emerge As The Biggest Investor In India's Defence Sector Following Rafale Deal
Dassault Rafale fighter jet

Dassault will be the biggest investor in India’s defense sector under the Foreign Direct Investment (FDI) following the Rafale fighter jet deal.

The first tranche of FDI, about INR 200 crore ($31 million) is likely to come by July, Economic Times reported Friday.

The investment is part of Dassault’s obligations on Make in India commitments under the Rafale fighter jet deal. These commitments require the French company to manufacture a significant part of the aircraft in India. 

The investment, intended for manufacturing of aircraft components for global markets, will come into the Dassault-Reliance Aerospace Limited (DRAL) joint venture set up to meet offset obligations for the Rs 58,000-crore deal. The first tranche of FDI, around Rs 200 crore, is likely to come in by July. 

“Dassault will emerge as a single largest FDI investor in the defence sector. It will far exceed all FDI till date in the defence sector in India. The cumulative FDI in the defence sector in India till date is of the order of $6 million,” Rajesh K Dhingra, president, Reliance Defence & Aerospace, told ET. 

The JV will be used for creating infrastructure at the Mihan (Nagpur) facility, with a ground-breaking ceremony planned for the end of July. Teams from the French company have visited the site at least four times in the past three months to finalise project plans. “Groundbreaking is planned in July and we expect the first article to roll out in the first quarter of 2018. Currently, first batch of our team is undergoing training at Dassault facilities in France,” Dhingra added. 

Government clearances would not be required for the inflow as it will be under the automatic route for FDI given that Reliance Defence holds 51% of the JV. 

Also Read

Indian Air Force Identifies Air Bases To Locate Rafale Fighter Jets: Report

May 17, 2017 @ 11:27 AM

Dassault In Talks With Malaysia For 18 Rafale Jets: Eric Trappier

May 15, 2017 @ 01:33 PM

Rafale, Eurofighter Not Shortlisted In Malaysian MRCA Jet Competition: Defence Minister

March 26, 2017 @ 04:12 PM

Next Production Standard Of Dassault Rafale Fighters Gets Government Approval

March 23, 2017 @ 03:45 PM

Hollande to Pitch For Rafale During Malaysia Visit Next Week: LIMA News

March 22, 2017 @ 12:50 PM

Rafale International Presents India Offsets Program to French SMEs

November 27, 2017 @ 04:50 PM

Dassault Eyes Falcon 2000 Business Jet Manufacturing in India

October 10, 2017 @ 10:26 AM

Indian Air Force Starts Work on Two Bases for Rafale Fighter Jets

October 2, 2017 @ 08:07 AM

France, Germany To Lead Future European Jet Fighter Program To Replace Eurofighter,...

July 27, 2017 @ 06:53 PM

Indian Rafale Fighter Jets to Get Rafael’s Litening Targeting Pod

July 18, 2017 @ 08:20 AM
FEATURES/INTERVIEWS