Reliance Infrastructure Limited (RInfra) promoted Reliance Aerostructure Limited's Joint Venture (JV) with Dassault Aviation DASSAULT RELIANCE AEROSPACE LIMITED (DRAL) has been incorporated.
Eric Trappier, Chairman of Dassault Aviation France, will be the Chairman, and Anil D Ambani, Chairman of Reliance Group, will be the Co-Chairman of DRAL.
Reliance Aerostructure Limited (RAL) will have 51% shareholding in the JV, while Dassault Aviation (DA) will hold 49%.
On 23 September 2016, India and France signed a purchase agreement for supply of 36 Rafale fighter jets at a value of Euro 7.87 billion, or about Rs.60,000 crore. The contract includes a 50% offset obligation to the tune of approximately Rs. 30,000 crore, which is the largest ever offset contract in the history of India. DRAL will be a key player in the execution of offset obligations.
DRAL has finalized the Infrastructure requirements at Dhirubhai Aerospace Park at Mihan, Nagpur and the construction work for the greenfield facility will start in May 2017, and production by end-2017.
DRAL will execute the programs in phases, with Phase I resulting in the generation of more than 700 highly-skilled direct jobs and 2,800 indirect jobs.
DRAL will support Government of India's "Make in India" and "Skill India" policies and develop major Indian programs with high levels of technology transfer to benefit the entire aerospace sector.
The proposed strategic partnership between Dassault and Reliance will also focus on promoting Research and Development projects under the IDDM program (Indigenously Designed, Developed and Manufactured).
Shares of RELIANCE INFRASTRUCTURE LTD. was last trading in BSE at Rs.550.9 as compared to the previous close of Rs. 541.55. The total number of shares traded during the day was 208771 in over 4299 trades.
The stock hit an intraday high of Rs. 553 and intraday low of 540. The net turnover during the day was Rs. 114497336.