Connect with us

Business

Offset venture with Reliance will deliver 10% of obligations: Dassault Aviation CEO

Published

on

Rafale deal scam

New Delhi, Oct 12 : Dassault Aviation CEO Eric Trappier has said that the companys 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 hundred 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 hundred Indian companies and partnerships have already been concluded with about thirty of them,” Trappier said in an interview to AFP.

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 trades unions 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 (Defence Procurement Procedure). The implementation of offsets is an obligation and, under the Indian regulation, the choice of the partners belongs to us,” he said.

Trappier said Dassault Aviation decided to establish a long-term presence in India through Dassault Reliance Aerospace Limited (DRAL), a joint enterprise in which governance is provided by an Indian Chief Executive Officer and a French Chief Operating Officer.

He said Dassault Aviation exercises technical and industrial control over the operations, applying its standards and its flexibility.

“This JV will produce parts for the Falcon 2000 and Rafale. The choice of the Nagpur site, in central India, was dictated by the availability of land with direct access to an airport runway,” he said.

Asked about the controversies in India surrounding the deal, Trappier said controversies are always unfortunate “but we remain calm”.

“Things are progressing rapidly. We set up DRAL on February 10, 2017, and the plant project was officially launched on October 27, 2017,” he said.

Trappier said the first phase of the project involves building a temporary hangar to house the production tools and enable staff training to begin as rapidly as possible and it was completed in March 2018.

“Activities started on April 18 in the presence of senior executives from Dassault Aviation and the local authorities. We hired an Indian CEO Sampathkumaran S.T., who has more than 20 years’ experience in the aeronautical industry. We have hired and trained Indian managers and workers. The first Falcon 2000 parts should roll off the line at the end of the year,” he said.

Trappier said a second phase started in July 2018, with the construction of a final building, completion being scheduled for July 2019.

“This building will allow a ramp-up in industrial activities. The cooperation between Dassault and India, which has existed for 65 years, has been given fresh impetus by Make in India and we are proud to be able to contribute to it,” he added.

The Congress has been alleging irregularities in the deal signed by the Narendra Modi government to purchase Rafale fighter jets, saying that it had caused a loss of Rs 41,000 crore to the exchequer compared to the deal negotiated by the previous UPA government and that the Dassault was forced to choose Reliance as its Indian partner for the offset contract.

IANS

Business

Sensex opens in green, all eyes on Fed

Published

on

Sensex Nifty Equity

Mumbai, Dec 19: Amid mixed Asian cues and falling crude oil prices, the domestic indices opened in the green on Wednesday.

The Sensex of the BSE opened at 36,441.46 from its previous close at 36,347.08 on Tuesday as investors were cautious of the ongoing Federal Open Market Committee (FOMC) meeting that was expected to raise interest rates that has kept the sentiments tepid, analysts said.

All sectors, except power and Teck, traded in green.

At 9.20 a.m., the Sensex traded at 36,486.30 higher by 139.22 points or 0.38 per cent.

The Nifty50 of the National Stock Exchange (NSE) opened at 10,930.55 after closing at 10,908.70 on Tuesday.The Nifty traded at 10,954 during the morning trade session, up 45.30 points and 0.42 per cent.

IANS

Continue Reading

Business

Don’t want RBI money, but can’t let economy starve: Jaitley

“The main issue was not the economic capital framework. It’s an issue for a medium term. But the immediate issue is we can’t allow our economy to starve (on liquidity),” Jaitley said at a summit hosted by television channel Republic TV here.

Published

on

Arun Jaitley

Mumbai, Dec 18 : Admitting using Section 7 of the RBI Act to force a discussion with the central bank on liquidity and credit issues, Finance Minister Arun Jaitley on Tuesday said he could not have let the economy starve for liquidity.

As for the Reserve Bank of India (RBI)’s economic capital, he said it was never the main issue between the government and the RBI and that the government does not want any money from the bank’s reserves to fix its fiscal deficit.

“The main issue was not the economic capital framework. It’s an issue for a medium term. But the immediate issue is we can’t allow our economy to starve (on liquidity),” Jaitley said at a summit hosted by television channel Republic TV here.

Stating that his government had the best fiscal deficit track record, he declared that even in the current year, he will meet the announced fiscal deficit target within the available resources.

“I don’t want any money from the Reserve Bank’s reserves at the moment. The only question which was raised were really two…there were several questions around two important facts — first relating to liquidity in certain sectors of the economy and availability of credit,” he said.

In his tiff with the RBI, which ended with Governor Urjit Patel resigning last week, Jaitley said he always respects the bank’s autonomy, but as a sovereign and accountable government, he had to flag the liquidity issue for which he used all tools available.

“We used every instrument available to our advantage to force a discussion and whatever steps we took — informal plus formal and statutory — were really to flag the issue of liquidity and credit,” he said hinting at the Section 7 of the RBI Act, which was never used earlier.

The section empowers the government to give directions to the central bank on matters of public interest even if the RBI or its Governor holds a different view.

Stating that there was never a breakdown in his relationship with the central banker, Jaitley said he wanted the autonomous and independent RBI to hold stakeholder consultations and resolve the problem, which was related to monetary policy.

“I say I have read some books, some data, some research papers, some statistics and I am forming an opinion. The empirical evidence in the market would be entirely different… All these institutions must be autonomous but must never be isolationist. If they are isolationists, there is a fair chance they will go wrong,” he added.

Continue Reading

Business

Indian small businesses thrive on Amazon special sales day

Published

on

Amazon

Bengaluru, Dec 18 : Indian small businesses and enterprises (SBEs) witnessed a 1.4x spike in the sale of their products on Amazon during its ‘Small Business Day’ sales event, said the world’s leading e-tailer on Tuesday.

“The online sales event held on December 16 had orders coming from 20,400 pin codes across the country, where buyers could find products offered by small and medium businesses,” said the Indian arm of Amazon in a statement here.

Handmade products by weavers and artisans were popular during the sale, and witnessed a sales spike of over 60 per cent compared to average business days, the company said.

Nearly 2,000 sellers witnessed a sales spike more than four times compared to an average business day, and 4,100 sellers saw a two times spike, it added.

Organic skin products, handmade and handloom products were among the top-selling categories during the Small Business Day.

“Few of the small businesses had quit their day jobs to sell on our platform, hired more employees and grew their sales as customers from across the country responded equally well,” said Amazon India Director (Seller Services) Gopal Pillai in the statement.

Tribes India, a handmade products brand under the Tribal Cooperative Marketing Development Federation of India (TRIFED), saw a spike of 4x over average business day during the one-day event, the statement noted.

The online sales event was aimed at promoting small businesses and micro entrepreneurs and encouraging shoppers to discover and buy products directly offered by them.

Continue Reading
Advertisement

Most Popular