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Reliance Infrastructure shares rose 5% after announcing a joint venture with Dassault Aviation to manufacture Falcon 2000 jets in Nagpur. The facility will produce key components, with the first jet delivery expected by 2028, boosting local aerospace manufacturing.
The stock price of Reliance Infrastructure Limited surged by 5 percent on Wednesday, thus touching the upper circuit limit at ₹386 on the BSE. The upward trend followed a vital announcement made recently regarding a strategic aviation partnership between a subsidiary of Reliance and the French aerospace major Dassault Aviation.
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Reliance Aerostructure Limited has tied up with Dassault Aviation to manufacture Falcon 2000 business jets in India, thereby marking the first time Dassault will assemble these jets outside of France. The final assembly line is planned to be set up in Nagpur with the involvement of Dassault Reliance Aerospace Limited (DRAL), and the first ‘Made in India’ Falcon 2000 is expected to take flight by 2028, catering to both corporate and military segments.
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By expectation, the DRAL facility in Nagpur will be able to become a global center of excellence for the Falcon series. The agreement also provides for locally assembling parts such as the fuselage, wings, and other critical components for the Falcon 2000 along with structural work for the Falcon 6X and 8X. The required infrastructure to support these production lines will be upgraded by Dassault.
Incorporated in 2017, DRAL has already delivered over 100 Falcon 2000 sub-sections. The expanded operation has been projected to provide jobs for engineers and technicians for the next ten years.
In the same vein, Reliance Infrastructure has completed the allotment of 1.25 crore equity shares at ₹240 per share, which will raise ₹300 crore through the conversion of warrants into shares. The capital, the company explained, would be used to strengthen its long-term business objectives.
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