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Reliance plans to make Falcon parts in Mihan

Discussion in 'Indian Defence Industry' started by Layman, Mar 29, 2017.

  1. Layman

    Layman Colonel Senior Member

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    Reliance plans to make Falcon parts in Mihan
    Published March 29, 2017


    Anil Dhirubhai Ambani Group (ADAG), which plans to enter defence production plans, will begin with a business jet instead. It will first make nose cones for the Falcon 2000, the business jet made by France’s Dassault, at Mihan SEZ. ADAG group company Reliance Aerostructure Ltd has been allotted 104 acres land at SEZ being developed by Maharashtra Airport Development Company (MADC).

    Sources said there production of the nose cones would begin on an area of 1800 square metres in Mihan land by December this year. It would later be expanded by adding new hangars. There are plans to start manufacturing the entire Falcon 2000 in 2-5 years, said a source closely involved with the development. Sources said this was too short a duration in terms of size of the plans.

    Despite having ambitious plans, ADAG is yet to clear Rs38 crore dues towards SEZ’s land cost. The final lease agreement for the land will not be signed by MADC until the dues are cleared. Reliance wants MADC to first construct an over 1km runway connecting the existing runway with its land. MADC is insisting Reliance should reach at least half way on its project so it gets some assurance that it was serious.”Constructing runway involves a major investment and MADC being a government company cannot go-ahead with the work without any concrete development on ADAG’s side,” said a source. Sources in Reliance said the first batch of professionals to be trained in the technology for Falcon 2000 will be reaching France in a month. This will be followed by other batches soon.

    After Dassault signed a deal to sell 36 Rafale aircraft for Indian Air Force, the French company has entered into a joint venture with ADAG to execute the offsets arising out of the deal. Projects under the offset deal would begin with making components for the aircraft. A majority of work will be undertaken at Mihan site covering an area of 64 acres.

    Reliance was allotted 289 acres in 2015 when it announced a Rs6500 crore Dhirubhai Ambani Aerospace Park at Mihan. The requirement was later reduced to 104 acres for which a payment of Rs38 crore is due.

    This was touted as the biggest investment in Mihan until Patanjali’s food park for which land has been given both within and outside the SEZ.

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