New Delhi [India], February 16 (ANI): Bharat Electronics Limited (BEL) has approved signing a Joint Venture Agreement (JVA) with Safran Electronics and Defence (SED), France, for the HAMMER weapon system project, according to a stock exchange filing by the company.

The approval was granted during BEL's board meeting held on Sunday. The operationalisation of the joint venture agreement will be subject to regulatory and administrative approvals from authorities in both India and France.

As part of the agreement, BEL and Safran Electronics and Defence will jointly incorporate a private limited company under the Companies Act, 2013. The registered office and principal place of business of the new company will be located in Pune or any other location mutually agreed upon by both partners.

BEL, in an official statement, informed that the joint venture company will operate a 'Center of Excellence,' which will act as a technology and teaming partner.

The company will focus on the manufacturing, supply, maintenance, and repair of the Guidance Kit (GK) for the HAMMER weapon system. The primary end users of this system will be the Indian Air Force and the Indian Navy. Other end users within India may also be included based on mutual agreement between the two companies.

The shareholding in the joint venture will be equally divided between BEL and Safran Electronics and Defence, with both partners holding 50 per cent equity each.

The company will be incorporated with an initial authorised share capital of Rs 1,00,000 (1 lakh) which will consist of 1,000 equity shares of Rs 100 each.

This authorised share capital may be increased up to Rs 10,00,00,000 (10 crore) or any other amount, depending on business requirements.

The governance structure of the joint venture company will include a board of four directors. BEL will nominate two directors, while Safran Electronics and Defence will nominate the other two directors.

The Chairman of the board will be appointed by the nominees, but the Chairman will not have a casting vote.

BEL also informed that the joint venture aims to strengthen technological capabilities and support the manufacturing and maintenance of critical components of the HAMMER weapon system in India, in line with operational requirements. (ANI)