India and France clear path for local Hammer missile production under new defence joint venture
Bharat Electronics Limited (BEL) and Safran Electronics and Defence (SED) have announced a partnership to make a private limited company. The location will be Pune. The partnership’s objective is to produce Hammer missiles for fighter jets such as the Rafale.
The project will be incorporated with an initial authorised share capital of ₹ 1,00,000, consisting of 1,000 equity shares of ₹100 each. It might increase up to Rs. 10 crores or any other amount. It totally depends on the business requirement.
The Hammers, which are air-to-surface smart standoff weapons, will be produced locally and used on the Indian Navy’s marine version of the fighter jets. Last year, the Navy signed a deal to buy 26 Rafale M aircraft.
Under the joint venture (JV), both companies can jointly decide to sell these missiles to other users in India.
According to a PSU filing with the Ministry of Defence, the JV will commence operations only after obtaining the required regulatory and administrative approvals from authorities in both India and France.
The two companies will set up a new private limited company under the Companies Act, 2013. Its registered office and main place of business will be in Pune or any other location agreed upon by both partners.
The JV will have a board of four directors, with two nominated by BEL and two by Safran.
