Tuesday, July 11, 2017

Decks cleared for Dhirubhai Ambani Aerospace Park

Mumbai: Construction activity at the Dhirubhai Ambani Aerospace Park at Mihan, Nagpur, is set to kick start by the end of this month, with the Commerce Ministry giving its approval for developing the park.

Reliance Defence is looking to invest ₹6,500 crore in the park.

The facility is set to host the first ‘Make in India’ defence project, since it will be home to the Dassault-Reliance Aerospace joint venture. France’s Dassault Aviation and Reliance Defence have teamed up in a 49:51 stake joint venture, to carry out the obligations and execute the ₹30,000-crore offset programme related to the sale of 36 Rafale fighter jets.

The park will also be home to the largest defence sector foreign direct investment (FDI) in the country, with the French aircraft manufacturer slated to bring in the first tranche of FDI amounting to ₹200 crore by the month-end.

On July 3, the Ministry of Commerce granted approval to the Anil Ambani-led Reliance Infrastructure arm Reliance Aerostructure as a co-developer of the park, confirmed a senior executive. The Maharashtra Airport Development Company is the nodal agency for developing the aerospace park.

A senior executive told BusinessLine that manufacturing at the site will start by the end of this year with the last approval falling in place. Some 50 people have already joined the company.

“For the last two months, we have people who are already training in France. They are part of the team, the lead managers at the site, and have been undergoing training with the Dassault team in France,” the executive told this newspaper.
10/07/17 Amrita Nair-Ghaswalla/Business Line