NEW DELHI (Sputnik) — Dassault will have to invest half the amount of the Rafale deal i.e $4.42 billion in India as per the rules of offset obligations of country's defense procurement policy.
Out of 50%, France will invest 30% in military aeronautics-related research programs and 20 % fund will be invested in Indian defense firms which will make components of Rafale. Under the contract, $31.25 million will be in direct investment term which is expected to arrive from France's Dassault via its Dassault Reliance Aviation Ltd (the joint venture between both the companies) by the end of this year.
"As part of this cooperation between the Indian and French companies, Indian partners will benefit in a unique way from the technological know-how transfers opportunities while thousands of Indian engineers and technicians will benefit from a massive skills transfer opportunity," Dassault Aviation claimed.
The Dassault Reliance Aerospace Limited will be part of the planned Aerospace Park in Nagpur and plans to develop an indigenous value-added supply chain with the small and medium-scale segment of the defense sector. However, small and medium-scale industries are yet to be in the clear about their role in the business as Indian Air Force will receive all the 36 Rafale fighters in flyway condition. The deliveries of the 36 aircraft will commence in September 2019 and will be completed in April 2022.
