BEL, France’s Thales in JV for radar development
30 Aug 2012
State-owned Bharat Electronics Ltd (BEL) and French defence equipment company Thales on Wednesday announced the formation of a joint venture company in India to design, develop, market, supply and support civilian and select defence radars for Indian and global markets.
The boards of both companies have approved the formation of a new joint venture company, subject to statutory approvals from the Indian and French governments, according to a statement by BEL.
The two companies signed a MoU to this effect in November 2009, and the boards of both companies have now approved the formation of a JV.
"The parent companies aim at making the joint venture company a centre of excellence with the ability to offer solutions specifically aimed at meeting the needs of both Indian and export customers," the statement said.
Thales will hold 26 per cent equity, the maximum holding interest allowed to a foreign company in the defence sector, while Bangalore-headquartered BEL will hold 74 per cent of the stock, the statement added.
Thales has had a significant presence in India, and is a major supplier to Dassault's Rafale, which has been shortlisted for the Indian Air Force's $11 billion medium multi-role combat Aircraft (MMRCA).
Separately, the French defence major is also involved in the Indian Air Force's $2 billion Mirage-2000 fighter upgrade programme.