Monday, December 28, 2015

Jackpot for Reliance, Key defense deals Signed with Russia

Jackpot for Reliance, Key defense deals Signed with Russia

    The Recent Indo Russian meet could be a very successful for Reliance, who signed number of memorandum's with Russian defense giants which include Russian shipbuilder cooperation USC and it's export Agent Rosboronexport, Reliance also signed another mega deal with Russian air defense missile maker Almaz Antey who produces the small Tor missile systems to the long range S 400 missiles. The total contract agreement could reach more than some $10 billions. Which is one of the biggest military deal signed with Private company.

     The new Indian government's agenda is produce almost every Military hardware's in India with foreign co operation. The major aspect is bringing private firms in defense sector to produce those hardware's then buy from local vendor. Many of the Indian Private companies like Reliance, TATA and L&T signed many contracts with number of foreign companies. Some of them move with western military industry. Where Reliance keep with Russians as bigger market with less margin.

     The recent PM visit to Russia accompanied by many Reliance officials. Reliance in negotiations with many Russian companies since last one year. The private companies won't waste time unlike government, One year of hard work gives better results to Reliance. It's reported many times here in the blog that Reliance officials camped in Russia to talk with Russian shipbuilders to build warships and maintaining older warships in Russian shipyard.

  First deal signed with the Russian shipbuilder United Shipbuilding Cooperation, The USC has entirely controlled by the Russian government, Having three major ship building and maintenance centers in Russia. Most of the Russian warships and Submarines are built in those shipyards only, Another contract signed with Rosboronexport for exporting and maintaining contract of Russian built warships.

     The estimated deal value of the above contract is more than billions of dollars. Reliance look to gain profit of some $10 billions within next fifteen years. The actual contract period is fifteen years. The signed contract is about to be

1. Modernizing all Russian Built Indian Navy ships under Reliance facility
2. Refitment of  all Russian Built Indian Navy ships under Reliance facility
3. Building more Talwar class frigates
4. Building Landing Platfrom Docks for Indian Navy
5. Construction of Missile Boats and Shallow water ASW Craft

     Reliance confirms the first two works should be carried out in Reliance shipyard only, For the others Reliance will compete with Indian PSU's. Reliance bought Pipavav shipyard in Gujarat. The Reliance maritime missions spearheaded by Ex Indian Navy vice admiral H.S Malhi.

     Reliance gets another good contract with the Russian air defense missile company Almaz Antey. who is also a Russian state owned company. Most of the Russian air defense systems are built by Almaz Antey only. S 125, S 300 and S 400 are good examples for that. The Russian government agreed with the Almaz Antey and the Reliance defense to build missile defense systems Radars and modernize existing systems in India. The contract further allows the Reliance factory's to build and sell those systems to Indian Military and foreign countries.

    The deal mainly focus the need of Indian Military's modernization of existing missile defense batteries. The recent DAC meet confirmed the proposal of Air force's modernization of S 125 systems with new electronics. The work could be carried out by Reliance defense only. since they get the contract from Almaz Antey to upgrade works.

Tor M1 Air defense system
     Almaz Antey also confirmed Reliance's option of building Tor M 1 systems in India. Tor M1 is known as one of the best known stand alone air defense system. The Indian Army has a requirement of  QRSAM which will replace the older sterla system. The Tor M1 Production option gives good opportunity to Reliance. If Reliance secures the Army contract.

In future if India signs the S 400 deal, Reliance will built those S 400 systems to Indian Air force.

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