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In a major step toward reshaping India’s aerospace manufacturing landscape, the Ministry of Defence (MoD) is planning to initiate a comprehensive restructuring of Dassault Reliance Aerospace Limited (DRAL).
To support upcoming fighter jet production, the government is prompting French aerospace giant Dassault Aviation to replace its current minority partner, the Anil Ambani-led Reliance Aerostructure Limited, with fresh private-sector collaborators.
This structural overhaul follows a recent shift in corporate ownership in late 2025, where Dassault Aviation increased its stake to 51 percent, thereby assuming majority control of the Nagpur-based enterprise.
By transforming DRAL into a Dassault subsidiary, the French manufacturer is cementing its direct involvement in advancing India’s self-reliance goals.
Reliance Aerostructure’s current 49 percent holding in the joint venture is slated for divestment.
MoD officials and Dassault are reportedly evaluating multiple Indian private companies to absorb this share.
Industry sources suggest that rather than relying on a single firm, two or three different domestic partners may be brought on board.
This diversified approach is designed to mitigate the risks of depending on a single corporate entity and to significantly widen the nation's industrial foundation for defence manufacturing.
This strategic pivot is directly linked to the massive Multi-Role Fighter Aircraft (MRFA) programme.
Following the Defence Acquisition Council’s clearance in early 2026, the estimated ₹3.25 lakh crore initiative will see India procure 114 Rafale jets.
While 18 will be acquired in fly-away condition, the remaining 96 will be manufactured on Indian soil. This undertaking stands as one of the most extensive domestic production commitments ever established between India and a foreign original equipment manufacturer.
The newly selected domestic partners will be tasked with vital responsibilities, including developing advanced production infrastructure at the MIHAN special economic zone in Nagpur, optimizing supply chains, and executing complex, large-scale assembly.
The objective is to produce the highly advanced Rafale F4 standard and achieve up to 60 percent indigenous content by the end of the production cycle, aligning perfectly with the government’s vision for deeper technology absorption in modern defence systems.
In addition to constructing new fighter jets, the restructured DRAL facility is envisioned as a premier regional Maintenance, Repair, and Overhaul (MRO) hub.
Alongside parallel initiatives—such as engine-maker Safran's upcoming MRO centre for M88 engines—the hub will sustain the Indian Air Force and Navy’s expanding Rafale fleets, while potentially serving other international operators across the broader region.
Throughout this transition, Dassault Aviation will remain fully responsible for transferring the sophisticated technologies required to build, assemble, and test the jets locally.
The French firm will govern all quality assurance protocols and pre-delivery inspections to meet the military's stringent standards.
Ultimately, the MoD's initiative to reinvent DRAL underscores a dedicated strategy to cultivate a resilient, private-sector-led aerospace ecosystem, ensuring that India's complex defence projects are efficient, scalable, and sustainable for decades to come.
