Rafale deal: Reliance, Dassault Aviation set up joint venture

In a major deal for India's private defence industry, Anil Ambani-led Reliance Group and Rafale maker Dassault Aviation today announced a joint venture. A joint statement by the companies said, the entity will be a "key player" in execution of offset contract worth about 22,000 crore rupees as part of the fighter jet deal.

The announcement of the Joint Venture, 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 Rs 59,000 crore. The



agreement includes a 50 per cent offset obligation, the largest-ever offset contract in the history of India.

The main point of the offset agreement is 74 per cent of it has to be imported from India, which means direct business worth around Rs 22,000 crore. There is also a technology-sharing component, which is being discussed with the Defence Research and Development Organisation (DRDO).

Other companies involved in the Rafale deal include French firms MBDA and Thales, besides Safran, which too will be part of the overall offset obligation.