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Reliance Defence along with L&T likely to bag multi-billion dollar defence contract


Reliance Defence and Engineering Ltd (RDEL) is likely to bag billion dollar contract from the Defence Ministry for making amphibious defence projects for the Navy, sources said. The company’s shipyard has been recently verified in detail on financial and technical competence, before being given clearance from the Defence Acquisition Council (DAC) for all military projects particularly Naval Warships and Submarine. Reliance Defence and Engineering (RDEL) wholly owned subsidiary of Reliance Infrastructure was formerly known as Pipavav before its acquisition by Anil Ambani.

The only other to participate in Indian Naval projects is Larsen & Toubro (L&T).  Both have entered the final lap after another private player ABG Shipyard failed to clear the capacity assessment test of Defence Ministry. RDEL aims to fully participate in the Indian Navy’s ten-year acquisition plans worth over Rs 3 Lakh crore.57dbdd88c36188883d8b45e8

LPD, also known as amphibious transport dock, weighs 20,000 ton. A fully equipped warfare ship designed to transport troops into a war zone by sea, principally using mooring craft, has the capability to operate transport helicopters in addition to having hangar facilities and a landing deck. LPD would be the largest warship to be built in an Indian yard after the aircraft carrier under construction in Kochi.

The $2 billion contract is the biggest warship construction project for the private sector and has the potential to make the winner a leading player.

“We have already cleared the financial and technical capacity assessment report long time back”, L&T spokesperson stated.

“The Defence Acquisition Council (DAC) in its last meeting has cleared the capacity assessment of RDEL, which is now eligible for all defence projects particularly Naval Warships and Submarines,” the source said.

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