DIPP has approved 12 industrial licences to Reliance Defence, an arm of Reliance Infrastructure, for manufacturing of a wide range of defence equipment.
The licence approval by the Department of Industrial Policy and Promotion (DIPP) for strategic business units (SBUs) of Reliance Defence is aimed at addressing defence programmes in India and overseas.
Key Points
In the aerospace segment, with licences to manufacture military aircraft and helicopters, the company looks to meet amphibious aircraft requirements of the Indian Navy, pegged at Rs. 9,000 crore, and light utility helicopters, an opportunity valued at more than Rs. 20,000 crore.
In addition, there is a requirement of 160-200 medium-to-heavy helicopters valued at Rs. 50,000 crore.
The transport and the combat aircraft requirements for the Indian Air Force in the next 10 years will be in excess of Rs. 60,000 crore, something the company is also eyeing.
In Land Systems, Reliance has got licences for manufacturing of missiles and all-terrain combat vehicles.
The key programmes in this segment include short-, medium- and long-range missile systems with programme value in excess of Rs. 50,000 crore.
The Indian Army will spend an additional Rs. 50,000 crore over the next 10-15 years on different combat vehicles.
As for Naval Systems, Reliance is focusing on key areas, as is evident from licences for air independent propulsion technology and Hull penetrators and connectors along with motor shafts and propulsion systems, the company official said.
In the case of unmanned aerial systems, the company is looking at various requirements from the Indian Navy, the Army and the Air Force. The combined value of these programmes over next 10 years is expected to top Rs. 30,000 crore.
For the export market, Reliance Strategic Electronics Division (SED) plans to target the global market of USD 7 billion to manufacture night vision devices (NVDs) and surveillance ones.
Comment
There is a large market for combat vehicles in the Middle East, Africa and South America.
Reliance is aiming at developing an infantry combat vehicle, which will not only address domestic requirements, but can also take care of the global opportunities estimated at about USD 50 billion.
Current Affairs 9th March, 2016 Highlights of Union Budget 2016-17 Highlights of Railway Budget 2016
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