Category — Defense/ Security

Reliance Defense, India, to Set Up Shipyard for Building Subs

Reliance Defense, a subsidiary of one of India’s largest private sector firms Reliance Infrastructure, disclosed plans to build a shipyard on India’s east coast to build nuclear submarines and aircraft carriers. The company has entered into a memorandum of understanding with the government of the eastern state of Andhra Pradesh to build a facility that will be “co-located with the Indian Navy’s strategic base and Bhabha Atomic Research Center‘s nuclear facility at Rambilli, approximately 43 miles south of the coastal city Visakhapatnam,” (where the Indian Navy’s Eastern Command Headquarters is also located) a statement issued by the company said. .

Reliance Defense Shipyard (credits- Livefist)

Reliance Defense Shipyard (credits- Livefist)

Speaking at a summit in Visakhapatnam, chairman Anil Ambani said the facility will be built with an initial investment of $757 million, adding that the facility could lead to the creation of an array of defense ancillaries with further investments of up to $1.5 billion, reports Defense News.

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January 30, 2016   No Comments

Westinghouse Hopes to Close the India Reactor Deal by March

According to Business Standard Toshiba Corporation’s Westinghouse Electric hopes to clinch a deal to build six nuclear reactors in India by end-March, CEO Daniel Roderick said, in time for a possible visit by Prime Minister Narendra Modi to Washington to attend a global nuclear summit. A Westinghouse team was already in India to negotiate the deal, Roderick noted.

Daniel Roderick, president and CEO of Westinghouse

Daniel Roderick, president and CEO of Westinghouse

The proposed power plant in the western state of Gujarat will speed up India’s plans to build roughly 60 reactors and would give a boost to India’s $150-billion nuclear power program.

The ratification of the International Atomic Energy Agency‘s Convention on Supplementary Compensation for Nuclear Damage is expected within weeks, an Indian government official said.

India has launched an insurance pool with a liability cap of about $222 million to assuage suppliers’ concerns, after a 2010 law gave the state-run operator Nuclear Power Corporation of India Ltd., the right to seek damages from them in the event of an accident.

“We need to see the details of the insurance company and how the insurance will work at a level beyond what we have seen so far,” Roderick said in an interview. “And that needs to happen in the next 30 to 45 days.”

Roderick also remarked that if the GE-Hitachi deal did not eventually go through, Westinghouse would rather the Indian government gave it the site than to “Russia or somebody else”.

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January 30, 2016   No Comments

Reliance Defense Acquires SAAB Stake in Pipavav

Security and defense company Saab of Sweden has sold its stake – approximately 3.3 percent – in Pipavav Defense and Offshore Engineering Company Limited to Reliance Defense Systems.

The value of the transaction was not revealed, but it forms part of Reliance Defense’s efforts to expand its ownership in Pipavav. In March 2015 Reliance Defense had acquired a 17.66% stake in the company for $124 million, (INR 8.19 billion) and an additional 17% stake in December for an estimated $139 million, (INR 8.5 billion) with the latter progressing through an open offer to shareholders. With the acquisition of Saab’s share, Reliance Defense Ltd., now has the controlling stakes in Pipavav.

Reliance Defense in Pipavav

Reliance Defense in Pipavav

“It is natural to act on the inquiry we got from Reliance Defense Systems to acquire our stake in Pipavav. We believe the cooperation between Saab and Pipavav now has the potential to get even better with the new owner,” said Jan Widerström, head of Saab India. “Saab works actively in support of India’s strategy to increase its national ability to produce defense material. Local partnerships are being fostered to meet the needs of the customer and the market conditions,” he added.

The acquisition of Pipavav has given Reliance an infrastructural base to manufacture aircraft carriers, submarines and warships domestically reports The Hindu Business Line.

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January 30, 2016   No Comments

Fincantieri of Italy to Collaborate with Defense Shipyards in India

Trieste, Italy-based shipbuilding company Fincantieri has signed a contract with Mazagon Dock Limited, an Indian shipyard controlled by the Ministry of Defense and specialized in the building of naval and offshore units, to provide technical advice within the Project 17A.

This project includes the construction of 7 stealth frigates 488 feet in length with a displacement of 6,400 tons that were ordered by the Indian Navy from Mazagon Dock Limited and Garden Reach Shipbuilders & Engineers. While the Indian Navy will provide the basic and functional design, the ships will be built at the two shipyards with Fincantieri’s experience. Fincantieri will aid in the development of detailed engineering aimed at integrated building in the two yards; design optimization processes and modular construction; training and ongoing technical assistance for every stage of design till delivery reports The Maritime Executive.

This long term collaboration will also bring about a significant return of technology and know-how for Fincantieri, with the creation of system advisors, useful for other programs in which the group is involved too.

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January 30, 2016   No Comments

India’s Defense Acquisition Council Approves Major Policy Changes

India’s Defense Acquisition Council, the top decision-making body of the Defense Ministry, has approved major policy changes that include increased offset baselines, reduced delays in procedures, and emphasis on local production.

Accordingly, in the new Defense Procurement Policy, threshold  contract value for which offsets are mandatory has been revised from the earlier $46 million  to $320 million.

Delays in procurement will be reduced by eliminating repetitive procedures. Certain procurements will be allowed in case of single vendor situations with proper justifications. Earlier, no purchase order  was issued if there was only a single vendor bidding for any project.

The Defense Ministry clarified that representatives who are on the payroll of a defense firm should not be called agents. It defines agents as those whose income/remuneration is dependent on whether they are able to win the contract. “The representative should be paid a reasonable fee…he should not be a commission agent or be paid depending on the cost of a deal or the success or failure of the deal,” Minister for Defense Manohar Parrikar said.

Minister for Defense, Manohar Parrikar

Minister for Defense, Manohar Parrikar

The new Defense Procurement Policy also includes guidelines for the government to enter into strategic partnerships with private sector companies in six critical areas, ranging from aircraft and warships to tanks and guided missile systems, reports Defense World.

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January 17, 2016   No Comments