Rafale Deal: Dassault-Reliance venture is just 10% of offset obligation

CEO Eric Trappier says the company is negotiating with 100 Indian firms to meet the requirements of the Defence Procurement Procedure

Rafale Deal: Dassault-Reliance venture is just 10% of offset obligation

Cops walk past a billboard used during a protest by the Youth Congress against the alleged scam in the Rafale deal, in Bengaluru. Pic/PTI

Dassault Aviation CEO Eric Trappier has said that the company's joint venture with Reliance in Nagpur represents only about 10 per cent of the offset obligations in the deal to purchase 36 fighter jets from France and it is in negotiations with about a 100 Indian companies to meet the requirements under the Defence Procurement Procedure of the Indian government.

"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 100 Indian companies and partnerships have already been concluded with about 30 of them," Trappier said. He again made it clear that Dassault Aviation, which manufactures the Rafale jets, chose its offset partner.

"The reference is the contract we signed and which is called 'offset contract'. With regard to the staff and trade union organisations, Dassault Aviation uses the term 'obligation contractuelle d'offse' or 'obligation contractuelle de compensation'. Signing an offset contract is a requirement of Indian law. The implementation of offsets is an obligation and, under the Indian regulation, the choice of partners belongs to us," he said.

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