Nagpur: French major Dassault Aviation will invest over 100 million euros in a joint venture with Reliance Aerospace to manufacture aircraft components as part of the ‘offset obligation’ connected to the purchase of 36 Rafale fighter jets from France.
The Dassault-Reliance joint venture represents the largest ever foreign direct investment in the defence sector in India, the companies said in a joint statement.
The foundation laying ceremony of the Dassault Reliance Aerospace manufacturing facility was held on Friday at the Dhirubhai Ambani Aerospace Park in Mihan SEZ near the Nagpur airport.
DRAL will manufacture several components of the offset obligation connected to the purchase of 36 Rafale from France, signed between the two governments in September 2016, Mr Ambani said.
It will manufacture components for the Legacy Falcon 2000 series of civil jets manufactured by Dassault Aviation and will become part of its global supply chain.
“These first steps are expected to be achieved in the coming years, leading to the possible setting up of the final assembly of Rafale and Falcon aircraft in India,” a DRAL official said.