NDTV Profit

Anil Ambani-Led Reliance Defence to Set Up Shipyard in Andhra Pradesh

Reliance Defence Ltd has signed an accord with the Andhra Pradesh government to set up a naval facility along the country's eastern coast with an initial investment of Rs 5,000 crore ($748 million), the company said on Sunday.
EMAIL
COMMENTS
Reliance Group chairman Anil  Ambani said the Indian navy could spend nearly Rs 20,000 crore annually over the next 15 years on acquisitions and fleet modernisation of submarines and aircraft carriers.
Reliance Group chairman Anil Ambani said the Indian navy could spend nearly Rs 20,000 crore annually over the next 15 years on acquisitions and fleet modernisation of submarines and aircraft carriers.
Mumbai: Reliance Defence Ltd has signed an accord with the Andhra Pradesh government to set up a naval facility along the country's eastern coast with an initial investment of Rs 5,000 crore ($748 million), the company said on Sunday.

Reliance Defence, a unit of billionaire Anil Ambani's Reliance Infrastructure Ltd, plans to build submarines and aircraft carriers as well as to provide services including maintenance and refitting of ships at the facility.

It will be located 70 km south of Visakhapatnam in Andhra Pradesh.

Reliance Group chairman Mr Ambani cited estimates saying the Indian navy could spend nearly Rs 20,000 crore annually over the next 15 years on acquisitions and fleet modernisation of submarines and aircraft carriers.

This would generate a "huge pipeline of opportunity", according to a copy of his speech at an industry event released by the company.

The Narendra Modi government wants a greater role for the state and defence firms as it is forecast to spend $250 billion over the next decade to upgrade its military.

The government has, however, yet to move forward on its plans to build up the submarine fleet, meaning any order for companies including Reliance Defence may be years away.

($1 = Rs 66.8372)

© Thomson Reuters 2016



For latest news on Business, like us on Facebook and follow us on Twitter.
ALSO READ Trading Calls: Buy Ashok Leyland, Vedanta, HDFC Bank, Say Experts

Advertisement

Advertisement

GAINERS / LOSERS