New Delhi: Anil Ambani-led Reliance Defence has inked a pact with Israel's Rafael Advanced Defence System to set up a JV in India for specialised areas including air- to-air missiles that will oversee projects worth USD 10 billion (over Rs 65,000 crore) in ten years.
"In one of the biggest joint ventures between an Indian company with any original equipment manufacturer (OEM), Reliance Defence Ltd, a 100 percent subsidiary of Reliance Infrastructure Ltd and Rafael Advanced Defence Systems Ltd have decided to set up a joint venture company in India in the highly specialised areas of air-to-air missiles, air defence systems and large aerostats," the company said in a statement.
The venture will have 51 percent holding from Reliance Defence and 49 percent by Rafael as per the current guidelines of the government, it said.
It will provide big thrust to the field of indigenous production and development of high precision and state of the art weapon systems in India.
The partnership with technology power house and one of the world leaders in defence technologies, Rafael Advanced Defence Systems of Israel will mark the entry of Reliance Defence in the complex field of air-to-air missiles and air defence systems manufacturing in India, it said.
"The joint venture company will be located at Pithampur, Indore in Madhya Pradesh and will generate more than 3,000 highly skilled jobs. The project will have an initial capital outlay of more than Rs 1,300 crore, without including the cost of technology," Reliance Infrastructure said.
Rafael is a market leader in air-to-air missile segment and has world renowned product like Python and Derby.
Similarly, for the Air Defence Systems, Rafael portfolio includes SPYDER short range and medium range and Barak missiles family of Surface to Air Missiles in the short and medium range.
Rafael has already provided large aerostat systems to the Indian Air Force for meeting its surveillance, reconnaissance, communication and intelligence needs.
Reliance Infra said, "Based on the current requirements, the joint venture company will address multiple programmes valued at more than Rs 65,000 crore over next ten years," the company said.
Reliance Defence has industrial licences for the full spectrum of military platforms and is the fastest emerging private sector enterprise in the development, manufacture and supply of defence aerospace, land and naval platforms and equipment.