World-class naval facility to come up in Vizag

Reliance Group Chairman Anil Ambani announced the setting up of a naval facility at Rambilli, Vishakhapatnam, with an initial investment of Rs.5000 crore The Dollar Business Bureau

The new facility would complement the company’s existing plant at Pipavav in Gujarat, with a clear focus on building strategic assets for the Indian Navy.

Expanding its existing business, Reliance Group has signed an agreement with the Andhra Pradesh government for the setting up a world-class naval facility at Rambilli along the east coast, 70 kms south of Vishakhapatnam. Reliance Group Chairman Anil Ambani announced the new venture on Sunday while addressing the ongoing two-day investor summit in Vishakapatnam. “At an initial investment outlay of Rs.5,000 crore, it will represent the single largest investment at one location anywhere in Andhra Pradesh – an investment that will not only generate thousands of skilled jobs but also lead to the creation of a multi-tier array of defence ancillaries, bringing in further investments of anywhere between Rs.5,000 to 10,000 cr and thousands of additional skilled jobs,” Ambani said in his speech posted on the company’s website. The new facility would complement the company’s existing facility at Pipavav in Gujarat, with a clear focus on building strategic assets for the Indian Navy. Ambani also urged on the need for development in critical areas of naval defence capability in the region in order to compete with the world. Speaking about India’s naval preparedness, the industrialist said the Indian Navy has today just ‘one’ nuclear submarine on lease as compared to China’s dozen. “Further, nearly 90% of the conventional fleet in the Indian Navy is over 20 years old and due for urgent upgrade and re-fitment,” he said, adding that the country needs at least 23 additional submarines. He said the Indian Navy will spend nearly Rs.20, 000 crore per year on acquisitions and fleet modernisation of submarines and aircraft carriers over the next 15 years, creating a huge pipeline of opportunity for the proposed naval facility. Expressing hope that the Defence Ministry would oversee the transformation of the navy to its nuclear role, Ambani said, “Our proposed world class naval facility will play in critical role in complementing this mission and bringing it to fruition.” This will also translate ‘Make in India’ into ‘Make in Andhra Pradesh’, thus leapfrogging the state to the top of the manufacturing revolution in India’s defence sector, he added. The Andhra Pradesh government is organizing the business summit with an aim to attract investment up to Rs. 2 lakh crore.

January 11, 2016 | 03:55pm IST

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The Dollar Business Bureau - Jan 11, 2016 10:21 IST

World-class naval facility to come up in Vizag

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