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Anil Ambani group signs pact with Singapore defence firm

Last Updated 23 July 2015, 19:12 IST

Continuing its foray in the defence sector, Anil Ambani-led Reliance group has signed an agreement with a Singapore-based firm Augur Overseas Operation to manufacture aerostat and aeroship for the armed forces.

The joint venture with Reliance having 51 per cent share, would be involved in the development, production, sales, modification and life support for different sizes of aerostats, airships and lighter-than-air systems. The first aerostat envelope was delivered recently delivered to Pipavav Defence, a company owned by Reliance.

Aerostats are required in border surveillance as radars are mounted on these balloons to have a clear view deep inside the enemy territory. Indian currently uses imported Israeli aircraft even though defence research and development organisation too have come up with indigenous ones.

According to a market research report, the aerostat market is projected to rise from Rs 25,000 crore in 2014 to Rs 65,000 crore by 2020.

The requirement by the armed forces including the paramilitary forces is of 40 systems in the next 5 years with an estimated expenditure in excess of Rs 12,000 crore to meet its operational roles, the company said in a statement.

Major players in this field include TCOM-LP, Lockheed Martin, along with Augur. When the indigenous aerostat programme would become fully operational, India would join a select group of nations having developed such capabilities, including the US, Germany and France.

This is the second major defence deal that Reliance announced in the last two days. On Monday, it announced partnership with a Russian company to repair Indian Navy's Kilo class submarines in its Pipavav shipyard. The company claims all these projects would fall into the “Make in India” category and expand the indigenous base for defence manufacturing.

The partnership was between Pipavav, owned by Reliance, and JSC Ship Repairing Centre Zvyozdochka, for medium refits and life certification of 877 EKM submarines in India.

This will be the first time that submarines refit works are being considered for the private sector in India.

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(Published 23 July 2015, 19:12 IST)

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