New Delhi: The Competition Commission of India (CCI) on Friday approved a joint venture between Anil Ambani-led Reliance Group and French aircraft manufacturer, Dassault Aviation SA.
The fair trade regulator announced its approval in a posting on the microblogging site Twitter. “CCI approves setting up of a joint venture between Reliance Aerostructure Limited and Dassault Aviation,” the commission said.
The joint venture, Dassault Reliance Aerospace Pvt. Ltd, between Reliance Aerostructure and Dassault was announced in October.
In September, India inked a deal to buy 36 Rafale aircraft from Dassault for Rs59,000 crore. The agreement has a 50% offset clause. Of this Rs24,500 crore, 74% will have to come from India in goods and services, which could mean a boost for the government’s efforts to promote the local manufacture of defence equipment.
A filing with the CCI stated that Reliance Aero will hold a 51% stake in the joint venture and the remaining 49% will be held by Dassault.
CCI’s approval fulfils the regulatory requirements needed by the companies to proceed with the deal. The agreement has a 50% offset clause.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.