Eight units get conditional approval for 12 industrial licences
In its meeting held earlier this month, the Department of Industrial Policy and Promotion (DIPP) conditionally approved 12 industrial licences for eight subsidiaries of Reliance Defence.
Eight subsidiaries of Reliance Defence got licences for full spectrum manufacturing of defence including aircraft, helicopters, missiles, and night vision, naval and land systems. Greenfield defence projects by Reliance Infra subsidiaries will cover all critical requirements of the Indian armed forces under the ‘Make in India’ programme.
As many as 32 proposals were cleared by a high-powered panel for setting up manufacturing units in the defence and explosives sectors, including, Reliance Defence M/s OIS Advanced Technology Pvt Ltd, M/s Shan Arms Industries Pvt Ltd, DCX Cable Assemblies Pvt Ltd, M/s Avantel Ltd and Comint Systems And Solutions. The cases were decided in the fifth licensing committee meeting held in New Delhi on November 6.
DIPP has given conditional approval to 11 proposals of eight subsidiaries of Reliance Infra, which include Reliance Defence Technologies, Reliance Helicopters, Reliance Propulsion Systems, Reliance Aero-structure and Reliance Naval Systems.
To attract foreign direct investment (FDI) and boost defence manufacturing in the country, which imports up to 70% of its military hardware, the government had recently relaxed the policy, where it has allowed FDI up to 49% under the automatic route and beyond through the Foreign Investment Promotion Board’s (FIPB) approval. Portfolio investment and investment by foreign venture capitalinvestors (FVCIs) has also been allowed up to permitted automatic route level of 49%.
Reliance Defence, which has made significant progress both in the naval and aerospace domains, is at an advanced stage of setting up a state-of-art aerospace park at Mihan, Nagpur and is already committed to take leadership position as systems integrator and platform producer in all three domains.
The Anil Ambani company has already acquired land for the aerospace park at Nagpur; this park entails an investment outlay of R6,500 crore. Similarly, the group will make an additional investment of R5,000 crore to further strengthen the infrastructure at P-DOC to meet the requirements of upcoming programmes.
The site in Mihan was selected after an extensive survey of different sites across various states, because of its worldclass facilities and infrastructure like a Medicity; availability of top-class managers; due to its proximity to an IIM; disciplined work culture; airfield and air space for flight tests; proximity to an international airport; excellent telecommunications connectivity and social infrastructure among others.
In the Dhirubhai Ambani Aerospace Park, the group will set up assembly lines and manufacturing facilities of fixed-wing aircrafts, aerostructure for commercial transport aircraft and helicopters for both defence and commercial use. It is estimated to create 1,500 jobs in the primary sector, around 3,500 in the secondary and 5,000 in the tertiary sector.
With the focus of the government on ‘Make in India’ and ‘Skill Development’, the Reliance Group sees things progressing at a much faster pace. The entire process of land acquisition for the aerospace park was completed in less than 10 weeks.
* In its meeting held earlier this month, the Department of Industrial Policy and Promotion (DIPP) has conditionally approved 12 industrial licences for eight subsidiaries of Reliance Defence
* The subsidiaries of Reliance Defence got licences for full spectrum manufacturing of defence including aircraft, helicopters, missiles, and night vision, naval and land systems
* Greenfield defence projects by Reliance Infra subsidiaries will cover all critical requirements of the Indian armed forces under the ‘Make in India’ programme