Dassault Aviation-Reliance joint venture to manufacture, supply combat aircraft on worldwide basis

A Dassault Aviation-Reliance Group joint venture which was formed with a purpose to execute significant offsets for the Rs. 58,000 crore Rafale fighter jet deal, plans to build and supply military combat aircraft on a "worldwide basis". 

As per a exclusive story on Economic Times, Reliance Aero, which was incorporated in April 2015 by the Anil Ambani-controlled Reliance Group, will hold 51 per cent of the share in the joint venture with Dassault holding the rest, according to a clearance application filed before Competition Commission of India.

The joint venture was announced in October. 

The Rafale fighter jet deal entails an offsets component ­ money that has to be invested by the company into the Indian defence and aerospace sector ­ of over Rs 25,000 crore.

While a part of the offsets will go towards technology acquisition by the Defence Research and Development Organisation (DRDO), a major chunk will go into setting up of manufacturing facilities in India.