To Manufacture Defence Equipment, Reliance Signs Strategic Pact

The Anil Ambani-led Reliance Defence Ltd has signed a pact with Emirates Defence Industries Company (EDIC).

New Delhi:  For collaboration in maintenance, repair and overhaul category, the Anil Ambani-led Reliance Defence Ltd has signed a strategic pact with Emirates Defence Industries Company (EDIC).

The two companies have agreed to jointly explore the opportunity for manufacturing and building capabilities in defence vehicles, aviation and associated areas, defence equipment and armament manufacturing, defence electronics, commercial and naval ships besides Maintenance, Repair and Overhaul (MRO) of military equipment and platforms.

A statement issued by the Reliance group said, “The partnership will explore the opportunity in the UAE defence industry which has many capital expenditures but the costs for setting up facilities, recruiting and developing scientists and engineers are high… The partnership will aim at creating synergy to bring down operational costs and leverage each others’ capabilities.”

Reliance Defence Limited (RDL), established as a wholly-owned subsidiary of Reliance Infrastructure Limited (RIL), has 11 subsidiaries in niche segments of the sector.

EDIC is the premier integrated national defence services and manufacturing platform from the United Arab Emirates.

Industry sources said that the commonality in terms of platforms used by Armed forces in India and the UAE, are the Mirage 2000, Hawk trainers, Pilatus PC7, Lockheed Martin C130J and C-17 aircrafts, presenting an opportunity for co-operation between the two countries.

According to sources, India spends close to Rs 8,000 crore every year on maintenance of aircraft alone. “The Maintenance, Repair and Overhaul (MRO) expenditures for aircraft and weapon platform systems by parametric estimations exceed 50 per cent of the initial acquisition cost across the spectrum,” the sources said.

The EDIC is in the process of acquiring the Advanced Military Maintenance, Repair and Overhaul Centre (AMMROC), which provides MRO services for a wide range of fixed and rotary wing aircraft. This will help their partnership with RDL to establish domestic services to tap the defence market in India, said sources.

For RDL, this partnership is in line with the proposed facilities at the Dhirubhai Ambani Aerospace Park at Mihan in Maharashtra, spread over 400 acres and adjacent to the International Airport at Nagpur.