Indore: Reliance Group chairman Anil Ambani on Saturday said with 90% of defence equipment being imported, there is huge opportunity for domestic manufacturing and his group has identified two locations in Madhya Pradesh for setting up production facilities.
Ambani said India has relaxed foreign direct investment (FDI) norms in the defence sector and hoped that Madhya Pradesh gets the benefits of the same. “I am confident that Madhya Pradesh will move ahead, and under Prime Minister Narendra Modi we have seen opening on defence sector. Reliance Group is participating in that, we hope that for Make in India programme, Skill India programme, we will invest in the defence sector in Madhya Pradesh,” he said.
Speaking at the Global Investors Summit, Ambani said his group has identified two locations—one in Pithampur and another in Bhopal—for defence manufacturing. “Defence is a key priority (of government). 90 per cent of our equipment is imported and there is a huge huge opportunity for us to do things in India,” he said.
Talking about the group’s investment in the state, Ambani said, “We have one of our largest investments in MP...we have investment of nearly USD 6 billion”. The group has set up a 4,000 MW power plant in MP and it makes the state competitive in terms of its overall energy cost to attract future investments specially in capital intensive industries.
“Fiscally it helped Madhya Pradesh saving about Rs 5,000 crores a year and over Rs 1.25 lakh crore will be the saving for MP because of the Sasan 4,000 MW plant,” he said, adding the group is committed to looking at future investments in the energy sector. “Madhya Pradesh like other states is on the treadmill and everytime the speed is changing. I think the industry is spoiled for choice today which at one level is a good thing. I don’t think that we are spoilt for choice in terms of leadership, we still believe that Madhya Pradesh is one of the leading states,” he said.
Industry, Ambani said, is interested in clarity, stability and a timeline. “If states decide not to do certain things, it is better you tell us upfront so that we can look at other options... Instability in the minds of investors is always a troubling point”. PTI
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.