- 01 Mar 2023
- ICICIdirect Research
SIGNS AGREEMENT WITH THALES RELIANCE DEFENCE SYSTEMS
BEL - 316 Change: 8.70 (2.83 %)News: Bharat Electronics (BEL) has signed a frame supply agreement with Thales Reliance Defence Systems (TRDS), Nagpur, for the manufacture and supply of Transmit/Receive modules, radar LRUs (Line Replaceable Units) and micro modules of radar used in Rafale fighter aircraft. This agreement comes as a part of the offset commitment under the Rafale-India contract. In continuation to the signed agreement, BEL has received an order to manufacture and supply Micro Modules.
Views: India signed the deal for 36 Rafale fighter in Sept 2016, all of which have been delivered to Indian Air Force. The contract value was estimated at ~| 59000 crore of which 50% was to be offset by Dassault Aviation (manufacturer of Rafale fighters) or its partners (like Thales or Safran) in seven years’ time. The value of this particular agreement and contract signed between TRDS and BEL is not mentioned. However, we understand that this agreement would benefit BEL significantly in expanding capabilities in manufacturing radar & electronic warfare and also in terms of future orders (including exports)
Impact: Positive