Dassault CEO says Reliance will meet 10% of offset obligations for Rafale deal

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Highlighting that Anil Ambani-led Reliance Group is one of the 100 Indian corporations chosen for partnership as half of offset investments beneath the Rafale deal, Dassault Aviation CEO Eric Trappier mentioned the three way partnership with Reliance represents round 10 per cent of the full offset investments.

In an interview to AFP, Trappier mentioned, “We are in negotiations with about a hundred Indian Companies and partnerships have already been concluded with about thirty of them.”

When requested why Dassault selected Reliance over HAL, Trappier mentioned, “Dassault Aviation decided to establish a long-term presence in India through DRAL, a joint enterprise in which governance is provided by an Indian Chief Executive Officer and a French Chief Operating Officer. Dassault Aviation therefore exercises technical and industrial control over the operations, applying its standards and its flexibility. This JV will produce parts for the Falcon 2000 and Rafale. The choice of the Nagpur site, in central India, was dictated by the availability of land with direct access to an airport runway.”

Responding to the stories in French media that claimed Dassault’s three way partnership with its Anil Ambani-led Reliance Group was a ‘counterpart’ to win the contract for 36 fighter jets, Trappier mentioned, “To clarify matters, what is called ‘offset’ in English is usually translated into French as ‘compensation’ or ‘contrepartie’.”

“Signing an offset contract is a requirement of Indian law (Defence Procurement Procedure). The implementation of offsets is an obligation and, under the Indian regulation, the choice of the partners belongs to us,” he added.

Defence Minister Nirmala Sitharaman, who’s at the moment in Paris, additionally claimed that the federal government had no concept that Dassault Aviation would staff up with Reliance Group.

Dassault Aviation had earlier mentioned that it has freely chosen to make a partnership with India’s Reliance Group as half of offsets in India. The aircraft-maker mentioned partnerships have additionally been signed with different corporations reminiscent of BTSL, DEFSYS, Kinetic, Mahindra, Maini, SAMTEL and negotiations are nonetheless occurring with a hundred-odd different potential companions.

Dassault Aviation has dedicated to offsets in India value 50 per cent of the worth of the acquisition of Rafale jets.

Dassault Reliance Aerospace Ltd (DRAL), a three way partnership of Anil Ambani-led Reliance and Dassault, was created February 10, 2017. DRAL plant in Nagpur will manufacture elements for Falcon 2000 enterprise jets and, in a second step, elements for Rafale plane. The first Falcon 2000 elements will be delivered by finish 2018.

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