In the wake of the currently precarious defence situation of the country, India has seen a strategically and economically crucial development.
On Monday, Dassault and Reliance Aerospace announced the formation of Dassault Reliance Aerospace. As reported by Economic Times, their plan is to set up a facility spread over 100 acres in Nagpur, with the JV looking at creating a complete supply chain for the Rafale fighter jet in India.
Anil Ambani’s Reliance Group recently announced their collaboration with the giant French aerospace Dassault Aviations and they aim to do business worth Rs 20,000 crore as part of the offsets for the contract.
The jet deal has a 50 per cent offset clause, but part of it is likely to go as technology transfer costs for the Defence Research and Development Organisation as well as a possible Kaveri jet engine revival programme.
The deal will also be benefitting Nagpur in terms of employment as the Nagpur facility is expected to generate 1,500 direct jobs in seven years, with projections that each direct job would create six indirect jobs for suppliers and sub-contractors.
“The aim is to build up the integrated facility so that we can progressively bring up the Make in India components in the Rafale jet to 50 per cent,” a senior executive associated with the project said.
“The facility will be planned, designed and structured with French assistance. Work to create the infrastructure is expected in the next three months and the target is to get the plant started within 12 months of that,” the executive said.
The entire offsets work is to be completed within seven years.
As per the Rafale contract, Dassault is in charge of meeting the offset obligations and has to share details of all its partners and planned work within one year of signing the contract.
Information source: economictimes
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