Dassault Reliance Aerospace JV makes RelInfra shares jump over 5%
French aircraft manufacturer, Dassault aviation and Reliance Infrastructure (RelInfra) joined hands on Monday to create a joint venture in the aerospace sector called Dassault Reliance Aerospace.
Shares of Reliance Infrastructure jumped 5.24% to Rs 580.80 per share on BSE Sensex after this announcement.
“This new joint venture called ‘Dassault Reliance Aerospace’ will support Prime Minister Modi’s “Make in India” and “Skill India” policies and develop major Indian programs with high levels of technology transfer to benefit the entire aerospace sector,” RelInfra said in a statement.
The agreement with Dassault is a bet that Reliance can build manufacturing facilities at a site in Nagpur to feed into Dassault`s supply chain, or for future Indian government orders of the Rafale jet, a report by Reuters stated.
Dassult Reliance Aerospace will promote research and development projects under the the IDDM program (Indigenously Designed, Developed and Manufactured) programme.
The company stated that the JV will be key to executions of offset obligations as a part of the 36 Rafale fighter Jets purchase agreement at a value of €7.87 billion, or approximately Rs.59,000 crore (Rs 300 billion) signed between France and India on September 23, 2016.
Reuters quoted sources that said part of the 300 billion rupees in offsets would be spent directly on Reliance manufactured products, and part would be spent through other Indian manufacturers, depending on which company could best carry out the work.
The company stated that the agreement includes an offset obligation of 50%.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
03:02 PM IST