Anil Ambani-backed Reliance Group has formed a joint venture with Dassault Aviation of France to execute the offsets for the recently-concluded deal for 36 Rafale fighter jets.
Dassault Aviation recently won the contract for supplying Rafale fighter aircraft to India for ₹60,000 crore with 50 per cent offset clause. The new joint venture called Dassault Reliance Aerospace, will focus on aero structures, electronics and engines. Reliance Group said this contract worth ₹30,000 crore is the largest offset contract to be executed by any defence company in India till date.
An integrated facility is proposed to be set up at Reliance Special Economic Zone (SEZ) in Nagpur. Work is expected to begin in the next couple of months and production intended to begin within 12 months. Share price of Reliance Defence and Engineering Ltd was up 8.59 per cent at ₹61.30 on the BSE at close on Monday.
“The formation of this joint venture with Reliance Aerospace illustrates our strong commitment to establish ourselves in India and develop strategic industrial partnerships under the ‘Make in India’ policy promoted by the government,” said Eric Trappier, Chairman & CEO, Dassault Aviation.
The joint venture will partner with multiple micro, small and medium enterprises for sourcing and contracting.
“This is a transformational moment for the Indian aerospace sector and for Reliance Infrastructure’s subsidiary Reliance Aerospace,” said Anil Ambani, Chairman of the Reliance Group.