BackReliance Defence partners Russia’s Almaz-Antey
The firms will work jointly on the entire range of air defence missile systems required for Indian defence forces
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Mumbai: Anil Ambani-controlled Reliance Defence Ltd will work with Russia’s state-run arms manufacturer Almaz-Antey on the entire range of air defence systems required for India.
The two companies will work together on air defence missile systems, (including the TOR-1M missile programme) radars and automated control systems under the government’s Make in India initiative and offset policies, Reliance Infrastructure Ltd said in a statement. Reliance Defence is a wholly-owned subsidiary of Reliance Infrastructure.
India’s offset policy requires foreign arms manufacturers winning orders above ₹ 3 billion to source components worth 30% of the value of the order from India.
According to an 18 December PTI report, India’s defence acquisition committee cleared the purchase of an estimated ₹ 40,000 crore S-400 Triumf Russian air defence missile systems and other projects worth over ₹ 25,000 crore ahead of Prime Minister Narendra Modi’s visit to Moscow.
Reliance said the two firms also discussed the joint implementation of modernization, repair and deep overhauls of Almaz-Antey systems already in service with the Indian armed forces, besides research and development cooperation for new products in the defence sector.
Reliance Group chairman Anil Ambani said in the statement that the proposed partnership will constitute an important milestone in the strategic relationship between the two countries.
Reliance Defence holds in-principle industrial licences for the full spectrum of military platforms, the statement said.
Modi’s emphasis on defence equipment manufacturing as part of Make in India has triggered a rush for licences.
Last month, Reliance Defence secured 12 in-principle industrial licence approvals from the department of industrial policy and promotion for manufacturing aircraft, helicopters, unmanned aerial vehicles, all-terrain combat vehicles, night-vision devices, sensors, navigation and surveillance equipment, propulsion systems and simulators.
On 4 November, the Reliance Infrastructure board said new high-growth opportunities in the defence sector, arising from the Make in India and Skill India policies, serve vital national priorities and have several attractive features.
The board said these include relatively low capital intensity, a lower gestation period, minimal regulatory uncertainties, higher job creation and the potential for better return on equity.
Shares of Reliance Infrastructure closed 7.69% higher at ₹ 493.05 on the BSE, while India’s benchmark Sensex closed down 0.04% at 25,838.71 points. Pipavav Defence and Offshore Engineering Co. Ltd, in which Reliance Infrastructure has management control, jumped 20% to ₹ 100.25.
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.
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