Reliance Defence ties up with EDIC to manufacture defence equipment

By: | Published: September 29, 2015 12:47 AM

Reliance Defence Limited (RDL) has signed a strategic MoU with Emirates Defence Industries (EDIC), a leading integrated defence company in the UAE...

Reliance Defence Limited (RDL) has signed a strategic MoU with Emirates Defence Industries (EDIC), a leading integrated defence company in the UAE, and the premier partner for manufacturing, services, knowledge transfer and technology development from the Gulf country.

RDL and EDIC 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, MRO of military equipment /platforms.

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 bringing synergy to bring down operational costs and leverage each others’ capabilities.

India spends close to Rs 8,000 crore every year on maintenance of aircraft alone. Therefore, the commonality in terms of platforms used by the armed forces in both countries viz Mirage 2000, Hawk trainers, Pilatus PC7, Lockheed Martin C 130J & C-17 presents an opportunity for cooperation between the two countries.

Also, the recent decision taken by the government to acquire 22 Apache AH-64 attack helicopters and 15 Chinook CH 47 Heavy Lift helicopters valued at over $3 bn from the US only furthers the cause to domestically undertake the induction and operational support of the fleet.

RDL as a wholly owned subsidiary of Reliance Infrastructure Limited, with 11 subsidiaries in niche segments of defence sector, is pursuing partnerships with the leading international OEM’s; equity stake in existing companies within the country as also globally to meet home grown solutions for the defence sector.

The Maintenance, Repair & Overhaul (MRO) expenditures for aircraft and weapon platform systems by parametric estimations exceed 50% of the initial acquisition cost across the spectrum. Therefore, this strategic partnership between Reliance Group and EDIC aligns with the vision of the government towards self reliance to promote home grown solution and develop aviation sector expertise. Facilities to promote the ‘Make in India’ and Skill India initiative of the government of India.

For Reliance Defence, this partnership is in line with the proposed facilities at the Dhirubhai Ambani Aerospace Park at MIHAN spread over 400 Acres adjacent to the International Airport at Nagpur. EDIC is the premier integrated national defence services and manufacturing platform from the UAE, providing world-class facilities, technology and support.

EDIC expertise to jointly with Reliance Defence, develop OEM approved MROs for weapon platforms, engines & propeller accessories, Main Rotor Blades (MRB) and Auxiliary Power Units (APU), plugging the gap for the Indian armed forces in maintaining fleet serviceability in keeping with their operations and war plans.

After this MoU, the Indian Air Force which has 5 each C-17 and C-130J on their inventory with orders placed to double these, can now look to be serviced by EDIC at their facilities at Abu Dhabi.

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