NEW DELHI: Dassault Aviation CEO Eric Trappier has mentioned that the corporate’s joint venture with Reliance in Nagpur represents solely about 10 per cent of the offset obligations within the deal to buy 36 fighter jets from France and it’s in negotiations with a couple of hundred Indian firms to fulfill the necessities beneath the Defence Procurement Procedure of the Indian authorities.
“In full compliance with this regulation, Dassault Aviation decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10 per cent of these offset obligations. We are in negotiations with about a hundred Indian Companies and partnerships have already been concluded with about thirty of them,” Trappier mentioned in an interview to AFP.
He once more made it clear that Dassault Aviation, which manufactures the Rafale jets, selected its offset accomplice.
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“The reference is the contract we signed and which known as ‘offset contract’. With regard to the employees and trades unions organisations, Dassault Aviation makes use of the time period ‘obligation contractuelle d’offse’ or ‘obligation contractuelle de compensation’.
“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 mentioned.
Trappier mentioned Dassault Aviation determined to determine a long-term presence in India via Dassault Reliance Aerospace Limited (DRAL), a joint enterprise through which governance is offered by an Indian Chief Executive Officer and a French Chief Operating Officer.
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He mentioned Dassault Aviation workout routines technical and industrial management over the operations, making use of its requirements 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,” he mentioned.
Asked concerning the controversies in India surrounding the deal, Trappier mentioned controversies are at all times unlucky “but we remain calm”.
“Things are progressing rapidly. We set up DRAL on February 10, 2017, and the plant project was officially launched on October 27, 2017,” he mentioned.
Trappier mentioned the primary part of the venture entails constructing a brief hangar to accommodate the manufacturing instruments and allow employees coaching to start as quickly as doable and it was accomplished in March 2018.
“Activities started on April 18 in the presence of senior executives from Dassault Aviation and the local authorities. We hired an Indian CEO Sampathkumaran S.T., who has more than 20 years’ experience in the aeronautical industry. We have hired and trained Indian managers and workers. The first Falcon 2000 parts should roll off the line at the end of the year,” he mentioned.
Trappier mentioned a second part began in July 2018, with the development of a remaining constructing, completion being scheduled for July 2019.
“This building will allow a ramp-up in industrial activities. The cooperation between Dassault and India, which has existed for 65 years, has been given fresh impetus by Make in India and we are proud to be able to contribute to it,” he added.
The Congress has been alleging irregularities within the deal signed by the Narendra Modi authorities to buy Rafale fighter jets, saying that it had brought on a loss of Rs 41,000 crore to the exchequer in comparison with the deal negotiated by the earlier UPA authorities and that the Dassault was pressured to decide on Reliance as its Indian accomplice for the offset contract.