Reliance Group get DIPP’s clearance for defence manufacturing

NEW DELHI - Nov. 24, 2015 - PRLog -- Reliance Infrastructure’s bid to focus entirely on defence received a real boost when the Department of Industrial Policy and Promotion (DIPP) granted 11 conditional licenses to eight subsidiaries of Reliance Defence which allows them to manufacture aircrafts, helicopters, night-vision, missiles, naval and land systems and other defence equipment.

DIPP directly deals with foreign direct investment and after receiving licences from it, Reliance Defence just needs security clearance from the home ministry in order to begin manufacturing defence equipment.

An inter-ministerial committee was held on 6th November. It was presided over by DIPP secretary Amitabh Kant who not only granted the 11 licences to Reliance Defence, but also 21 others for defence manufacturing and explosives sector.


This news is fantastic for Anil Ambani, who is personally looking over Reliance Defence’s business after Reliance Infrastructure, its parent company’s exit from cement and roads business.

"The principal focus of the company would now be on defence and all our future investments would be in the sector. Our energy and EPC business would continue as it is," Lalit Jalan, Group Director - Strategy & Corporate Affairs of Reliance Group said.

The company made a statement. "The board noted that new high growth opportunities in the defence sector, arising from the Make in India and Skill India policies of the Prime Minister Narendra Modi, serve vital national priorities, and are also characterised by several attractive features."

Rajesh Dhingra, former MD of Lockheed Martin India, has been appointed as the leader of the initiative. Reliance Defence displayed its seriousness about business by acquiring Pipavav Defence and Offshore Engieering Co. The acquisition helped them to facilities for refitting and life extension of submarines, production of new frigates, and aircraft carrier. The company also has strategies to set up platforms for upgrades, maintenance, and repair.

Gujarat will emerge as the hub for production of naval systems and warships as RInfra is set to invest another Rs. 5,000 crore for expansion. Mihan, a town near Nagpur, has been chosen for the building of Dhirubhai Ambani Aerospace Park (DAAP) through an investment of almost $1 billion. The company’s role would be to install assembly lines and manufacturing facilities for fixed wing aircraft, aero structures for commercial transport aircraft and helicopters for commercial use and defence both.

The Indian Army and IAF would be looking forward to Reliance’s involvement in defence because they’ve been looking to replace Chetak and Cheetah helicopters. There’s a requirement of over 600 light utility helicopters to replace the existing fleet.

Reference Link:-http://economictimes.indiatimes.com/news/defence/reliance...

http://www.relianceada.com/ada/rinfra.html