Article Posted on : - Aug 29, 2012

An unrelated file photo.

NEW DELHI (PTI): State-run Bharat Electronics Limited (BEL) and French major Thales have agreed to form a joint venture company in India to design, develop, market and supply civilian and defence radars in local and global markets.

"BEL and Thales are delighted to announce that boards of both companies have approved the formation of a joint venture company.The company will be involved in the design, development, marketing, supply and support of civilian and select defence radars for Indian and global markets," the companies said in a joint statement here on Wednesday.

Thales will hold 26 per cent stake in the company - the maximum shareholding permitted for a foreign company in a defence joint venture in India. Bharat Electronics will own the majority 74 per cent, it said.

The formation of the new company is subject to approvals from the governments of India and France, the statement said.

BEL, a defence PSU, has been making radars for the Indian armed forces, including the Indra-II and the Rajendra radars.

It also provides support to the armed forces in maintaining their radars procured from foreign sources.

Thales has also been a major player in the Indian defence sector and recently won a USD 2.3 billion contract with Dassault Aviation from India for upgrading IAF's Mirage-2000 aircraft fleet.