Reliance, Rafale maker Dassault ink deal for aerospace venture

In a major deal for India’s private defence industry, Anil Ambani-led Reliance Group and Rafale maker Dassault Aviation yesterday announced a joint venture (JV) that will be a “key player” in execution of offset contract worth about Rs 22,000 crore as part of the fighter jet deal

Anil Ambani

New Delhi: In a major deal for India’s private defence industry, Anil Ambani-led Reliance Group and Rafale maker Dassault Aviation yesterday announced a joint venture (JV) that will be a “key player” in execution of offset contract worth about Rs 22,000 crore as part of the 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, or about R59,000 crore.

The agreement includes a 50 per cent offset obligation. The main point of the offset agreement is 74% of it has to be imported from India, which means direct business worth around Rs 22,000 crore. The offset, spread over seven years, will be finalised soon. The joint venture will be a key player in the execution of offset obligations, a joint statement by the companies said.

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