Reliance signs pact with Russian arms firm as Modi visits Moscow

Swan Defence and Heavy Industries

24/12/2015 08:49

By Sanjeev Miglani 
    NEW DELHI, Dec 24 (Reuters) - India's Reliance Defence said 
on Thursday it had signed a manufacturing and maintenance deal 
potentially worth $6 billion with Russia's Almaz-Antey, the 
maker of an air defence system that sources said the Indian 
military was poised to buy. 
    The partnership between the Indian firm controlled by 
billionaire Anil Ambani and the Russian firm was announced as 
Indian Prime Minister Narendra Modi began a trip to Moscow aimed 
at strengthening defence ties. 
    Earlier this week, Indian defence ministry sources said the 
government had cleared the purchase of five S-400 air defence 
systems that are estimated to cost about $4.5 billion in a bid 
to modernise the country's defences against airborne attacks. 
 urn:newsml:reuters.com:*:nL3N14647B 
    "The two sides identified the air defence missile 
systems.... radars and automated control systems as areas of 
partnership.... as well as offset policies of the Indian 
Ministry of Defence," Reliance said in a statement. 
    Under the offsets policy, global defence contractors are 
required to invest a percentage of the value of any deal in 
India to help it build a defence industrial base and reduce 
imports for a military that has emerged as the world's biggest 
buyer of arms in recent years. 
    India is forecast to spend $250 billion over the next decade 
to upgrade its military and Modi's government wants a greater 
role for Indian state and defence firms. 
    Reliance is forging close ties with Russia to jumpstart its 
ambitions to develop a defence business from scratch. It said it 
had also discussed joint implementation of modernisation, repair 
and overhaul of Almaz-Antey systems already in service in India. 
    The company also plans to bid for contracts for local 
manufacture of helicopters, submarines and ships. Earlier this 
month, Ambani's Reliance Infrastructure  RLIN.NS  took sole 
management control of Pipavav Defence and Offshore Engineering 
Co  PIPA.NS  which has built patrol vessels for the Indian navy. 
 
 (Editing by Miral Fahmy) 
 ((sanjeev.miglani@thomsonreuters.com; +91 11 4178 1020; Reuters 
Messaging: sanjeev.miglani@thomsonreuters.com@reuters.net)) 
 
Keywords: INDIA RELIANCE/