Reliance Defence Ltd. (RDL), a wholly-owned subsidiary of >Anil Ambani-led Reliance Infrastructure Ltd. has signed a memorandum of understanding (MoU) with Abu Dhabi Ship Building (ADSB) to explore an opportunity to set up a strategic partnership for the construction of naval ships including frigates, destroyers and other specialised vessels to address the needs of Gulf Cooperation Council (GCC) over the next 10 years.
ADSB is a leading provider of construction, repair and refit services for naval, military and commercial vessels in the GCC region.
Both RDL and ADSB are believed to be incorporating a joint venture, which will encompass both construction of new naval vessels as well as maintenance, repair and overhaul and refit opportunities of existing commercial and naval vessels in the region. Reliance Defence will be the majority partner in this proposed joint venture with 51 per cent stake, according to people familiar with the development.
“The agreement could also see ADSB delivering maintenance, repair, overhaul and refit services to the vessels, in line with regional requirements. Reliance Group is likely to use its newly acquired shipbuilding facilities at Pipavav for implementation of this collaboration,” Reliance Infrastructure said in a filing with the stock exchanges.
The MoU signing follows the joint statement issued during Prime Minister Narendra Modi’s visit to UAE on August 18, which highlighted ‘co-operation and manufacture of defence equipment in India,’ it added.
“Skills developed and the experience gained through this collaboration will further add to Reliance Group’s capabilities and position it favourably as a strategic partner for Indian Navy’s future programmes such as combat management systems (CMS), integrated bridge solutions (IBS), combat system integration (CSI), integrated platform management systems (IPMS) and staff training and development,” the company said.
This collaboration could help both companies address new opportunities. >Reliance Group has entered into half a dozen pacts with foreign collaborators to build up capability in defence equipment production in India.
