AeroIndia 2009: Israel's IAI to invest $50 million in JV with Tatas

Bengaluru: The board of directors of Israel Aerospace Industries (IAI) has, on 27 January, approved an investment of up to $50 million in Nova Integrated Systems Ltd (Nova), a joint venture between IAI and Tata Advanced Systems Ltd, a wholly-owned subsidiary of Tata Industries Ltd.

Nova will make unmanned aerial vehicles (UAVs), missile and radar systems, electronic warfare systems and homeland security devices.

It will also take on IAI's offset requirements in India, says an IAI release issued here.

TASL holds 74 per cent of the equity in Nova and IAI will hold 26 per cent, with an option to increase its holding up to 50 per cent, if there is a change in Indian law on FDI in the defence sector.

The sanctioned funds will be used for expenditure on land, equipment, infrastructure and manpower for the new company.

Until it is allotted equity in Nova, IAI can nominate a representative to attend board meetings as an observer.

Air Marshal Bhavnani (Retd) was appointed president of Nova on 1 November last year, and a team of managers has been put in place.

The company's vice president will be appointed by IAI.