The Reliance Group today signed a memorandum of understanding (MoU) with the Andhra Pradesh (AP) government to build a naval shipbuilding facility at Visakhapatnam with an investment of Rs 5,000 crore.
The MoU was signed at Partnership Summit 2016 in Visakhapatnam in the presence of Reliance Group chairman Anil Ambani and Andhra Pradesh chief minister Chandrababu Naidu.
The facility will be set up to build strategic assets like nuclear submarines for the Indian Navy. “The proposed naval facility will complement Reliance Group’s existing facility at Pipavav in Gujarat with clear focus on building strategic assets for the India Navy,” Anil Ambani said at the event.
The initial investment would be Rs 5,000 crore, he said, indicating the potential for further investments in this location in future. The Indian Navy is estimated to spend more than Rs 3 lakh crore over the next 15 years, creating large opportunities to address critical naval requirements under the Make-in-India initiative. Several Indian companies have already added defence manufacturing as an important part of their business portfolio.
The proposed facility aims to better the best in the world in terms of technology, resources and manufacturing practices, the company claimed.