French aerospace and electronics major Thales Wednesday said it would form a joint venture company with state-run Bharat Electronics Limited (BEL) to build civilian and defence radars.
The decision by the directors of both companies to form the joint venture (JV) is subject to mandatory approvals of the respective governments. The two companies had signed a memorandum of understanding (MoU) three years ago.
"The parent companies aim at making the JV company a centre of excellence with the ability to offer solutions specifically aimed at meeting the needs of both Indian and export customers," Thales said in a statement.
"The JVC will be dedicated to the design, development, marketing, supply and support of civilian and select defence radars for Indian and global markets," the statement said.
Thales said that under the current Indian foreign direct investment (FDI) norms in the defence sector, the company will hold 26 percent equity in the new JV. The remaining 74 percent equity will be held by BEL.