Rafale Deal: Dassault-Reliance venture is just 10% of offset obligation

CEO Eric Trappier says the company is negotiating with 100 Indian firms to meet the requirements of the Defence Procurement Procedure

Dassault Aviation CEO Eric Trappier has said that the company's joint venture with Reliance in Nagpur represents only about 10 per cent of the offset obligations in the deal to purchase 36 fighter jets from France and it is in negotiations with about a 100 Indian companies to meet the requirements under the Defence Procurement Procedure of the Indian government.

"In full compliance with this regulation, Dassault Aviation decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10 per cent of these offset obligations. We are in negotiations with about a 100 Indian companies and partnerships have already been concluded with about 30 of them," Trappier said. He again made it clear that Dassault Aviation, which manufactures the Rafale jets, chose its offset partner.

"The reference is the contract we signed and which is called 'offset contract'. With regard to the staff and trade union organisations, Dassault Aviation uses the term 'obligation contractuelle d'offse' or 'obligation contractuelle de compensation'. Signing an offset contract is a requirement of Indian law. The implementation of offsets is an obligation and, under the Indian regulation, the choice of partners belongs to us," he said.

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!