The Defence Acquisition Council (DAC) in its last meeting has cleared the capacity assessment of Reliance Defence and Engineering (RDEL), a wholly owned subsidiary of Reliance Infrastructure.
With this clearance the RDEL, is now eligible for all defence projects particularly Naval Warships and Submarines, according to sources. RDEL and L&T are the only two qualified private companies to participate in Indian Naval projects.
ABG Shipyard rejected by MOD from participation in any defence project.
RDEL aims to fully participate in the Indian Navy’s ten year acquisition plans worth over R3 Lakh crore.
RDEL has the most modern engineering infrastructure in India and is one of the largest in the world, and operates India’s largest dry dock of 662 m length and 65 m width. The shipyard has the only modular shipbuilding facility with capacity to build fully fabricated and outfitted blocks prior to their erection in Dry Dock. The fabrication facility is spread over 2.1 million sq ft. The shipyard has a pre-erection berth of 980 meters length and 40 meters width, and 2 Goliath cranes with combined lifting capacity of 1,200 tonnes, besides outfitting berth length of 780 meters.
In March 2015 Reliance Infrastructure together with its wholly owned subsidiary Reliance Defence Systems Private Limited, had agreed to acquire from the Promoters of Pipavav Defence 18% shareholding in the Company at a price of Rs 63 per Share, aggregating R819 crore. This was followed by an open offer. Post open offer, Reliance Infra now owns almost 35% in the company.
Later on Pipavav Defence also announced its plans to exit the corporate debt restructuring (CDR) package as it would lead to improved financial flexibility and increased business opportunities for P-DOC. Pipavav Defence has since been renamed as Reliance Defence and Engineering Ltd. (RDEL).
RDEL is also in the process of building 5 Naval Offshore Patrol Vessels (NOPV) for the Indian Navy, worth Rs 2500 crore — the first ever warships to be constructed at a Private Sector Shipyard. These vessels will be carrying out offshore patrolling, ocean surveillance, monitoring of sea lanes of communications, escorting high value ships and other Fleet Support Operations.
RDEL is all set to deliver the five NOPVs in 2017. The NOPVs are being constructed at PDOC simultaneously.