Indian Defence Industry is all set to get a taste of French Tech after Rafale deal

Indian Defence Industry is all set to get a taste of French Tech after Rafale deal

Paris based Dassault Aviation will invest around Rs.760 crore in India for boosting local defense manufacturing industry.

The investment will flow as part of a joint venture between Dassault Aviation and Anil Ambani’s Reliance Group for developing gears of Legacy Falcon 2000 Series civil aircraft. The production of the aircraft components will start from 2018.

This joint venture is the result of a business clause shared between India and France last year. According to that clause France flogged 36 Rafale jets to India for Rs. 59,000 crore; in return, French companies involved in the manufacture of the aircraft have to capitalize about 50% of the amount in India’s defense manufacturing marketplace to enhance local manufacturing.

Reliance Group said that it is spending Rs. 6,500 crore in the 289-acre Dhirubhai Ambani Aerospace Park. About the fund raising, Anil Ambani told reporters, “Funding will be from internal accruals, debt and equity.”  According to Reliance Infrastructure Ltd, the parent company of Reliance Defense, Indian defense market has the potential to enlarge up to 15 trillion rupees over the next 15 years.

The foundation stone of the Dassault Reliance Aerospace Limited (DRAL) manufacturing facility was laid at Mihan, Nagpur in the presence of Anil D.Ambani, Chairman of the Reliance Group and Eric Trappier, Chairman of Dassault Aviation.

Eric Trappier said that in initial period all the critical gears of all the 36 Rafael jets will be manufactured in Mihan and get assembled in France. Later, in near future all jet components will get assembled in India only. Anil Ambani further added, “All future needs of the Rafale jets, whether it’s for the navy or Indian Air Force, will be under the Make in India initiative in Mihan. We are best positioned to serve the double engine fighter jet market and we have full technology transfer from France.”

The DRAL project will train thousands of skilled personnel in aviation assembly and integration and will create huge employment opportunities in Nagpur and its surrounding areas. It will also fascinate and house an organic ecosystem of over 200 MSME’s to assist in the component and avionics manufacturing needs of Rafale and Falcon Jets.