World

India's Reliance Defence signs pact with Russian arms firm as Modi visits Moscow

India's Reliance Defence signs a manufacturing and maintenance deal potentially worth $6 billion with Russian company

Reuters December 24, 2015

prime minister narendra modi inspects the honour guard during a welcoming ceremony upon his arrival at moscow 039 s vnukovo airport russia december 23 2015 photo reuters

Prime Minister Narendra Modi inspects the honour guard during a welcoming ceremony upon his arrival at Moscow's Vnukovo Airport, Russia, December 23, 2015. PHOTO: REUTERS

NEW DELHI: India's Reliance Defence said on Thursday it had signed a manufacturing and maintenance deal potentially worth $6 billion with Russia's Almaz-Antey, the maker of an air defence system that sources said the Indian military was poised to buy.

The partnership between the Indian firm controlled by billionaire Anil Ambani and the Russian firm was announced as Indian Prime Minister Narendra Modi began a trip to Moscow aimed at strengthening defence ties.

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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.

"The two sides identified the air defence missile systems.... radars and automated control systems as areas of partnership.... as well as offset policies of the Indian Ministry of Defence," Reliance said in a statement.

Under the offsets policy, global defence contractors are required to invest a percentage of the value of any deal in India to help it build a defence industrial base and reduce imports for a military that has emerged as the world's biggest buyer of arms in recent years.

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 is forging close ties with Russia to jumpstart its ambitions to develop a defence business from scratch. It said it had also discussed joint implementation of modernisation, repair and overhaul of Almaz-Antey systems already in service in India.

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The company also plans to bid for contracts for local manufacture of helicopters, submarines and ships. Earlier this month, Ambani's Reliance Infrastructure took sole management control of Pipavav Defence and Offshore Engineering Co which has built patrol vessels for the Indian navy.

COMMENTS (11)

Shah Sajad Hussain | 8 years ago | Reply why you people don't think and understand the grand strategies of these big powers of the world. Once a great person said that 'world is full with blinds' and fools, don't you ever thought about their strategies in South Asian Region. Why did you people, forget to who divide people on communal basis and then bifurcated the Nation into parts. When the time would come! the Governments and people of both the countries could realize the actual strategic play, need and importance of each others for each other in the whole region.

someone | 8 years ago | Reply This is good. Also Sweden has shown interest in producing grippen in India. Way to go motherland.

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buba | 8 years ago | Reply All India needs is USA Strategic Defense Missile Shield and maybe Israel's Iron Dome - that should take the remove the fangs from Pakistan's nukes and maybe nudge the military into realization that peace is OK.

Tyggar | 8 years ago | Reply ghazal is being sarcastic

ghazal | 8 years ago | Reply @FG: @Indian: @Sameer: somethings can not be explained but can only be understood. with best capabilities only 50 % of Pakistan after 70 years has only partially understood """strategic location"" concept, how do you hope to understand it in just few minutes.

Vicky | 8 years ago | Reply @ghazal....hahaha strategic!!! Your condition tells the value of your strategic location..... by the way India's one defence deal (6bn) is equal to your whole defence budget ....world powers have lot to gain from India's 45 bn defence budget rather than Pak's 5 bn defence budget

Sameer | 8 years ago | Reply @ghazal.....we never saw Putin visiting pak, now even ur ally US president doesn't bother to visit pak....meanwhile Indian and Russian head of states regularly visit each other on every year basis

Indian | 8 years ago | Reply @ghazal: Mi4 or F-35 not even close to Russia's crown jewel S400.

FG | 8 years ago | Reply @ghazal How is Russian interest in Pakistan strategic? Russians are not there in Afghanistan anymore. Russian interest in Pakistan is purely geo-politics as Pakistan is also home to militants from Uzbekistan, Tajikistan and other Central Asian countries which Russia considers it's playground. India and Russia have long been allies. They have also bailed us out in UNSC by using their veto powers. The fact that Russians are exporting their top defense missile shield S-400 to India should tell you what Russians think of India.

Vectra | 8 years ago | Reply Reliance Defence & Almaz-Antey S400 deal is now done.Does this mean India's Reliance will now co-manufacture state of art S400 with Russia as the article mentions (manufacturing and maintenance deal )?? "The two sides identified the air defence missile systems... radars and automated control systems as areas of partnership... as well as offset policies of the Indian Ministry of Defence," Reliance said in a statement. Then i think one more deal Reliance is set to sign with United Shipbuilding Corporation.This Reliance Defence & USC deal will be i think for 4 more 4000tn improved Talwar class Frigate to be built in Pipavav Ship yard in India.

ghazal | 8 years ago | Reply so what, Russian interest with Pakistan are strategic where as with India are just commercial. Russian gave 4 Mi17 to Pakistan, though their cost was 1.57 times more than what India pays but pls do not forget Pakistan strategic location

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