Reliance Naval and Engineering Ltd. plans to raise funds from Reliance Infrastructure Ltd. via a rights issue, helping the parent raise stake in the group's defence manufacturing arm.
Making the announcement at Reliance Infrastructure's annual general meeting in Mumbai on Tuesday, Ambani said Reliance Naval will bid for making six submarines worth Rs 40,000 crore. The Reliance Group also aims to become an export hub to Airbus and Boeing for sensitive aircraft parts, he said.
Ambani's group is among the Indian companies eyeing defence contracts as Prime Minister Narendra Modi looks to boost local production to cut reliance on imports as part of his ‘Make in India' initiative. Over 90 percent of India's defence needs are met by imports and Reliance Naval (earlier called Reliance Defence and Engineering) wants to change that, Ambani said.
Reliance Infrastructure is also interested in the bullet train project and is in talks with Japanese companies, he said. Modi and his Japanese counterpart Shinzo Abe launched the project earlier this month.
InvIT Plans
Reliance Infrastructure will come out with an infrastructure investment trust in the ongoing quarter to raise Rs 2,500 crore by pooling in its road assets, Ambani said.
Also Read: Reliance General Insurance To Be Listed By FY18-End, Says Anmol Ambani
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