Reliance has 10 per cent of offset in Rafael deal: Dassault CEO
Paris, Oct 11 : Dassault Aviation's joint venture with Reliance represents around 10 per cent of the offset investments under the Rafale jet deal, Dassault CEO Eric Trappier has said.
"We're in talks with about 100 Indian firms, including around 30 with which we've already confirmed partnerships," Trappier told AFP.
Separately on Thursday, speaking at a briefing in Paris, Defence Minister Nirmala Sitharaman reiterated the government's claim that it had no idea that Dassault Aviation would team up with Reliance Group, run by Anil Ambani.
Several reports say Dassault was forced to choose Reliance by Prime Minister Narendra Modi, despite its having almost no experience in the aviation sector.
On the eve of Sitharaman's visit, French investigative website Mediapart quoted the notes of a meeting between Dassault management and workers' representatives which described the choice of Reliance as "imperative and compulsory".
"We are very clear: With the government of France, we agreed to purchase 36 Rafale aircraft in flyaway condition," Sitharaman said.
"And in an intergovernmental agreement, there are no mentions of any individual firms," she said.
"It is more for the companies which have chosen A, B or C as their partners to answer questions if there are any," she said.
In a statement, Dassault released a transcript of what it said was Trappier's interview with AFP in which he was asked about the status of the offsets.
"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, Trappier was quoted as saying.
"In full compliance with this regulation, Dassault Aviation therefore decided to set up the DRAL joint venture with Reliance and build a plant in Nagpur, which should enable us to meet about 10% 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," he was quoted as saying.
He said what is called offset in English is usually translated into French as compensation or contrepartie . With regard to the staff and trades unions organizations, Dassault Aviation uses the term obligation contractuelle d'offset or obligation contractuelle de compensation , he said.
Dassault negotiated for years with Hindustan Aeronautics Limited (HAL) for the order, with the jets being jointly built in India.
But those talks were cancelled after Prime Minister Narendra Modi took office, when he decided to purchase the jets directly from France.
Asked why Dassault chose Reliance over HAL as its partner, Trappier said Dassault Aviation decided to establish a long-term presence in India through DRAL, a joint enterprise in which governance is provided by an Indian Chief Executive Officer and a French Chief Operating Officer.
"Dassault Aviation therefore 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 was quoted as saying.
Dassault on Wednesday said it had "freely chosen" to form a joint venture with Reliance. But that stance was contradicted recently by former French president Francois Hollande, under whose watch the Rafale deal was signed.
Hollande said last month that France had "no choice" but to join with Reliance after it was pushed by the Indian government -- comments which were seized upon by Indian opposition parties.
Under Indian defence procurement rules, foreign companies winning contracts must "offset" or reinvest half the total value -- in this case around eight billion euros -- in joint ventures or purchases with Indian firms.
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South zone finalists announced at WAVES VFX challenge in Bengaluru
Bengaluru: The South Zone round of the WAVES VFX Challenge took place today in Bengaluru, organized by the Association of Bangalore Animation Industry (ABAI).
The day-long competition brought together talented participants from across southern India, with the goal of selecting top finalists who will go on to represent the region at the national finals next month during the WAVES Summit in Mumbai.
Finalists were selected in three categories:
Student Category
Winner: Soumya Das
Runner-up: Gagan HP
Professional Category
Winner: Mohamad Javeed
Runner-up: S Sai Chandan
Enthusiasts Category
Winner: Gagan Ajai
Over 1,500 entries were received from students, working professionals, and VFX enthusiasts, all centered around the theme “Super Hero Power.” Out of these, 14 entries were shortlisted to compete in today’s final round. One winner and one runner-up from each category were chosen to represent the South Zone in Mumbai.
ABAI Secretary R.K. Chand appreciated the strong participation and encouraged industry professionals to attend the Mumbai summit, which will host well-known personalities from films, advertising, and creative sectors. He also mentioned that the WAVES Challenge was recently launched in Bengaluru by Sanjay Jaju, Secretary, Ministry of Information and Broadcasting.
The event was inaugurated by Dr. Sagar Gulati, Director of the School of Creative Design and Information Technology at Jain (Deemed-to-be University), the zonal partner for the competition.
The day also featured two special sessions led by industry experts. Vijay Selvam from the global VFX studio MPC held a masterclass titled “Concept Reality,” where he discussed lighting, animation, compositing, and photorealistic effects. Students got the chance to interact with him during a Q&A session.
Another session was conducted by Rakesh H, Lead Head at The Mill, who spoke about how visual effects are used in advertising. Nearly 100 students attended these sessions, gaining valuable industry insights and learning opportunities.
