Reliance Defence ties up with Russian firm for air missile systems

With in principle industrial licenses for the full spectrum of military platforms, Reliance Defence is the emerging private sector enterprise in the development, manufacture and supply of defence aerospace, land and naval platforms and equipment. Modi is relying on foreign investments and privatization to reduce India's dependence on military imports, even as he plans to make the world's biggest buyer of arms into a manufacturing hub.

Reliance Defence Limited and Russia's leading developer and manufacturer of air defence missile systems Almaz-Antey, have chose to work jointly on the entire range of AD missile and radar systems that are required for the Indian defence forces, it was announced in Moscow on December 24, 2015.

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.

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 Defence seeks to build up its defense business after entering the sector earlier this year.

Reliance Infrastructure has acquired a majority control in Pipavav Defence and Offshore Engineering Company, which will be later renamed Reliance Defence after the recently concluded open offer.

Parent Reliance Infrastructure's shares surged 8% in Mumbai trading on Thursday, while the benchmark S&P BSE Sensex fell marginally. During the PM's current two-day visit to Russian Federation, several defence and nuclear deals are expected to be signed of which the Reliance Defence-USC deal is one. Reliance Defence, which holds 35% in Pipavav Defence, is a subsidiary of Reliance Infrastructure, part of the Reliance Group.