BUSINESS
Reliance Infrastructure’s entry into this space signals a growing role for the private sector in strengthening the nation’s defence systems.
Anil Ambani-led Reliance Infrastructure is making a strong entry into the defence aviation sector, marking a big step forward for private companies in India’s strategic industries. The company is aiming to expand its aircraft upgrade projects, targeting a market worth around Rs 5,000 crore over the next 7 to 10 years. According to a PTI report, this development makes Reliance Infrastructure the first private Indian company to independently carry out a full aircraft upgrade program without being the original manufacturer. Until now, such upgrades have mainly been handled by public sector units and original equipment manufacturers (OEMs).
A key milestone in this journey has already been achieved. Reliance upgraded 55 Dornier-228 aircraft under a contract with Hindustan Aeronautics Limited (HAL). The upgrades were done in partnership with Genesys, a US-based avionics firm. Initially, the company was awarded a contract for 37 aircraft, but after the successful execution, it received an additional order for 18 more. The total value of this project is estimated to be around Rs 350 crore.
These upgraded Dornier aircraft are now being used by the Indian Air Force, the Indian Navy, and the Indian Coast Guard. Military aircraft and helicopters generally have a service life of 30 to 40 years. During this time, upgrades to avionics, mission systems, and safety features are essential to keep them operational and efficient.
Industry experts note that the cost of upgrades and maintenance can often reach up to 200–300% of the original cost of the aircraft. This highlights the importance of reliable upgrade programs.
On a global level, the aircraft and helicopter upgrade market is valued at more than Rs 5,00,000 crore annually and is expected to grow to Rs 7,00,000 crore in the next seven years. With a large number of older aircraft in its inventory, India has a major opportunity to boost its defence capabilities through timely upgrades.
Reliance Infrastructure’s entry into this space signals a growing role for the private sector in strengthening the nation’s defence systems.
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