New Delhi(AFP): Reliance Defence is set to enter into an agreement with Russian United Shipbuilding Company (USC) to build four frigates for the Indian Navy, according to a report in Hindustan Times. It will be the first time that a major warship will be built at a private sector shipyard in India.
This could be a major boost to the Make in India initiative. PM Modi is currently on a visit to Russia, where he will hold talks and sign pacts with President Vladimir Putin. The agreement to build frigates might be signed during this visit.
These four front-line warships will be built at a cost of nearly Rs 30,000 crore at the Pipavav shipyard in Gujarat, says the report. Currently India has 35 Russian warships.
All Indian Navy surface ships of Russian and USSR origin shall be refitted and modernised as well, according to an agreement between Reliance Defence and USC.
If the agreement is signed, it will be the first of its kind between a Russian defence OEM (original equipment manufacturer) and an Indian private sector company. The total value of the agreements could exceed Rs 66,000 crores.