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.
The Indo-French deal
1. 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 Rs.30,000 crore, the largest ever offset contract in India.
2. DRAL will aim to grab a major size of the offset business, including components and parts for the jets.
Advantages of the joint venture to India
1. 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.
2. 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.
3. The partnership will also focus on promoting research and development projects.