Reliance Defence gets 12 industrial licences

By: | Updated: March 10, 2016 1:29 AM

The licensing committee of Department of Industrial Policy & Promotion (DIPP) has approved 12 industrial licences to Reliance Defence, a subsidiary of Reliance Infrastructure, for manufacturing of wide range of defence equipment required by the Indian Armed Forces and overseas market.

The licensing committee of Department of Industrial Policy & Promotion (DIPP) has approved 12 industrial licences to Reliance Defence, a subsidiary of Reliance Infrastructure, for manufacturing of wide range of defence equipment required by the Indian Armed Forces and overseas market.

Approval has been given to licences to the Strategic Business Units (SBU) under Reliance Defence Limited to address defence programmes in India and Overseas. “The foray of Reliance into these areas will give added traction to the government’s Make in India and Skill India initiatives,” says a company press release.

In the Aerospace segment, with licences to manufacture military aircraft and helicopters, the company will be looking at addressing the amphibious aircraft requirement of the Indian Navy pegged at R9,000 crore, light utility helicopters, an opportunity valued at more than R20,000 crore. In addition, there is a requirement of 160-200 medium to heavy helicopter, valued at R50,000 crore.

The transport and the combat aircraft requirements for the Indian Air Force in the next 10 years will be in excess of R60,000 crore.

In Land Systems, Reliance has got licences for manufacturing of Missiles & All Terrain Combat Vehicles. The key programmes in these segment includes short, medium and long range Missile Systems with program value in excess of R50,000 crore. The Indian Army will spend an additional R50,000 crore over next 10 to 15 years on different combat vehicles.

For the Naval Systems, Reliance is focusing on key systems as is evident from the licences for Air Independent Propulsion Technology and hull penetrators and connectors along with motor shafts and propulsion systems. Reliance Naval Systems is already working on C4I, Underwater systems, Weapons, Radars and Electro Optic Systems. Indian Navy has ambitious plans of inducting new vessels under different programs amounting to R300,000 cr. Typically, systems contribute 50 to 60% of the cost in case of Naval Warships.

In case of Unmanned Aerial Systems, the company is targeting different requirement from the Indian Navy, Army and the Air Force. Combined value of these programmes over next 10 years is expected to exceed R30,000 crore.

For the export market, Reliance Strategic Electronics Division (SED) plans to target the global market of R50,000 crore to manufacture night vision devices and surveillance devices.

There is a large market for combat vehicles in West Asia, Africa and South America. Reliance is aiming at developing an Infantry Combat Vehicle which will not only address the domestic requirement but can also address the global requirements estimated at R350,000 crore.

Reliance Defence & Engineering Limited, shipyard in Pipavav (Gujarat), a recent acquisition with controlling stake, have been down selected by the Russian government for the upcoming programme for four frigates valued at more than R30,000 crore.

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