Reliance Aerospace, a subsidiary of Reliance Infrastructure Ltd., and France's Dassault Aviation announced a joint venture in India aimed at developing high levels of technology transfer to benefit the entire aerospace sector.
The joint venture, named Dassault Reliance Aerospace, is part of the 50 percent offset clause in the Rs 59,000 crore Rafale fighter jet purchase agreement between France and India signed on September 23, 2016, according to Reliance Infra press release.
The 50 percent offset obligation is the largest-ever offset contract in India.
The newly formed joint venture will look to support Prime Minister Narendra Modi's Make In India and Skill India policies.
The proposed partnership will also focus on promoting research and development projects under the Indigeniously Designed, Developed and Manufactured programme, which was initiated by the country's Defence Minister Manohar Parrikar.
The formation of this joint venture with Reliance Aerospace led by Anil Ambani's Reliance Group illustrates our strong commitment to establish ourselves in India and to develop strategic industrial partnerships under the “Make in India” policy promoted by the Indian Government.Eric Trappier, Dassault Aviation Chairman & CEO, said in the press release.
Anil Ambani, chairman of the Reliance group, called it a “transformational” moment for the Indian aerospace sector.
Following the announcement, shares of Reliance Infrastructure gained 5.4 percent to Rs 581.75. Another ADAG group firm Reliance Defence jumped as much as 10.6 percent to Rs 62, most since March 8 of this year, on the Bombay Stock Exchange.
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