Pipavav Defence and Engineering Company is reported to have landed a major contract with India awarding a $3-billion contract to Russia for upgraded Naval frigates and Russia, in turn, selecting Pipavav shipyard for the construction of the vessels.
The record deal could be the first major job landed by Pipavav after its takeover by Reliance Infra.
Meanwhile, the company in a filing with BSE said, "As part of the ongoing business development efforts, we are in negotiations with potential global customers, including inter alia organisations owned by the Russian government, for multi-billion dollar contracts to build warships, frigates, etc."
Appropriate disclosures will be made as and when final agreements are signed, resulting in a reportable event, the filing added.
The contract for the new frigates is likely to be in the form of a govt-to-govt order with Russia. The deal could be signed in this financial year and delivery is expected over the next 6-8 years, according to reports.
The Reliance ADAG chairman Anil Ambani, meanwhile, announced plans to invest Rs5,000 crore in Pipavav Shipyard in line with the government's `Make in India' policy and to make Pipavav a one-stop shop for all requirements of the Indian Navy.
Ambani said he would invest an "additional Rs5,000 crore" in Pipavav over the next few years in the project.
The Reliance Group Chairman emphasised the need for flexibility to pursue the country's foreign policy objectives and called for more transparent and predictable systems and procedures.
"Transparent, fair procedures and processes create a favourable climate, encourage competitiveness and eventually deliver the best overall value for the country," he said.
Ambani said the specific measures towards ease of doing business will encourage industry participation to boost confidence of the private sector in the new 'Make in India' initiative.
"This is necessary as the ministry of defence is the sole domestic customer," he said.
Addressing a gathering of top defence officials and industry leaders, he said Reliance Group's "acquisition of Pipavav Defence Company in Gujarat with assets worth more than Rs10,000 crore" is our contribution towards self-reliance.
"We will invest an additional Rs5,000 crore over the next few years as part of our commitment towards indigenisation efforts," Ambani said at the seminar on indigenisation organised by the Navy and CII.
He underscored the fact that Pipavav has the largest dry dock in the country, which is the second-largest in the world.
With more than 30 lakh square feet of covered area for fabrication and integration alone, this is perhaps the largest single location defence manufacturing facility in India, he said.