eliance Group, led by billionaire Anil Ambani, will set up a naval ship-building facility near Visakhapatnam at a cost of Rs. 5,000 crore. It is the single biggest investment in Andhra Pradesh after its bifurcation.
A memorandum of understanding to build the facility was signed between Reliance ADA Group Chairman, Anil Ambani and AP Chief Minister, N. Chandrababu Naidu, at the CII Partnership Summit and Sunrise AP Investment Meet on Sunday.
Reliance will establish the facility at Rambilli, about 70 km from here, Mr. Ambani said.
This represents single largest investment by any company at one location anywhere in Andhra Pradesh. Indian Navy is estimated to spend over Rs. three lakh crore per year on acquisitions and fleet modernisation of submarines and aircraft carriers over the next 15 years creating large opportunities to address critical naval requirements under Make in India initiative.
The proposed facility would generate thousands of skilled jobs, Mr. Ambani said. The support ecosystem that would develop around this facility will bring in further investments of anywhere between Rs.5,000 crore to 10,000 crore and additional jobs.
The facility aims to be the best in the world in terms of technology, resources and manufacturing practices, he said. It is expected to complement Reliance Group's existing facility at Pipavav, in Gujarat, with a clear focus on building strategic assets for the Indian Navy. It will help translate ‘Make in India’ into ‘Make in Andhra Pradesh’ and push the state to be among the top makers of defence products, Mr. Ambani said.