New Delhi: Reliance ADA Group led by Anil Ambani has signed an agreement with Dassault Aviation of France (the manufacturer of Rafale fighter jets) for a joint venture in India on Monday that will help the largest-ever local sourcing and industrialized obligation of up to Rs 30,000 crore.
The Joint Venture (JV), Dassault Reliance Aerospace, comes after India and France on September 23 that inked the 7.87-billion-euro (around Rs 59,000-crore) deal for getting hold of 36 Rafale fighters directly, with the first jet to be distributed between October 2019 and early-2022.
The Ministry of Defence’s offset policy makes it compulsory for any foreign firm to plough back at least 30% of the contract value to India as offsets who wants to bag an arms deal over Rs 300 crore.
The Rafale deal has offsets clause of 50% -the largest-ever offset contract till now. Under the contract that needs to be executed within a period of seven years, 74% of the offsets have to be introduced from India to make aircraft components.
The JV will carry out the offsets of Dassault as well as of the other firms that are involved in the Rafale deal such as Thales and Safran, whereas those of missile manufacturer MBDA will be handled individually.