Reliance Infrastructure on Monday said its defence unit Reliance Aerostructure Ltd’s proposed joint venture with Dassault Aviation has received clearance from the Competition Commission of India (CCI).
“Reliance Infrastructure Ltd-promoted Reliance Aerostructure Ltd’s proposed JV with Dassault Aviation has received the CCI clearance,” Reliance Infrastructure (RInfra) said in a statement.
The JV company is proposed to be named as ‘Dassault Reliance Aerospace Ltd’ (DRAL).
Reliance Aerostructure Ltd (RAL) will have 51 per cent shareholding in the JV while Dassault Aviation (DA) will hold 49 per cent.
In October 2016, Reliance Group had entered into a strategic partnership with Dassault Aviation of France (Rafale) to execute the largest Defence Offset contract worth up to Rs 30,000 crore.
This was subsequent to Dassault Aviation getting a contract for the supply of 36 Rafale fighter aircrafts from the Government of India for Rs 60,000 crore with 50 per cent offset clause.
The execution of offset clause will bring in the largest FDI in defence sector till date, expected to be more than 10 times the total FDI in entire defence sector in India in last 10 years.