The Ministry of Corporate Affairs (MCA) has approved the incorporation of “BEL IAI AeroSystems Private Limited”, a joint venture between Bharat Electronics Limited and Israel Aerospace Industries Limited.
What Happened: The MCA’s approval for the joint venture came on Friday, according to the official announcement. The new entity, BEL IAI AeroSystems Private Limited, will provide product support, including repair and maintenance, for the Medium-Range Surface to Air Missile (MRSAM) System used in India. Bharat Electronics Limited holds a 40% stake in this joint venture.
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The joint venture is set to significantly boost the operational readiness of the MRSAM system in India. The partnership between the two companies is also expected to drive technological advancements and contribute to the growth of the defence sector.
The joint venture will still require approval from Ministry of Defence, India & Committee of Ministries for Social & Economic affairs, Israel.
Bharat Electronics is also set to enter the benchmark Nifty 50 on Friday, replacing LTIMindtree and Divi’s Laboratories in the index.
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