Reliance Defence Bagged INR 916 Crore Contract From Defence Ministry

Reliance Defence and Engineering Limited (RDEL), led by Anil Ambani has bagged a contract to build over 14 Fast Patrol Vessels (FPVs) for the Indian Coast Guard.

The FPVs will be designed and delivered at a cost of INR 916 crore under the ministry of defence contract. The FPVs are primarily used for patrolling carrying out anti-piracy, anti-smuggling, search and rescue operations, and for fisheries monitoring and protection.  They also have a secondary role of giving a communication link, and escort coastal convoys, in the times of war and hostilities.

“This is the first time, a private sector shipyard has been awarded a contract to design and build such class of ships for Indian Armed Forces. RDEL will be developing the design in-house,” said Reliance in a statement.

The other bidders in the fray included Larsen & Toubro Ltd, Goa Shipyard Ltd (GSL), Cochin Shipyard Ltd (CSL), and Garden Reach Shipbuilders & Engineers Ltd (GRSE). Reliance Group’s ambitions in the defence equipment space have been growing in the last few years.

The Group had entered the defence equipment space through the acquisition of Pipavav Defence and Offshore Engineering Co. Ltd, and since, then it has renamed Reliance Defence and Engineering Ltd in 2015.

It announced a joint venture with French-aircraft maker Dassault Aviation SA— Dassault Reliance Aerospace Pvt. Ltd, that is in line to get profit from a INR 24,500 crore seven-year offset deal.