Ambani also announces plans for a rights issue for Reliance Naval & Engineering to increase focus on the sunshine sector of defence
Confirming what had hitherto been in the realm of speculation, Reliance Group chairman Anil Ambani has said that his company will be joining the Indo-Japan initiative of building India’s first bullet train service that will connect Ahmedabad with Japan.
Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe had recently laid the foundation stone for the Rs 1 trillion project which will receive a loan of Rs 88000 crore at a 0.1 per cent interest from a Japanese multilateral lender. The bullet train connecting Ahmedabad with Mumbai is proposed to start its service by August 15, 2022 to coincide with India’s 75th Independence Day.
On Tuesday, speaking at 88th AGM of RInfra, Anil Ambani said: “We are deeply engaged and involved with a number of Japanese companies through joint ventures for the over Rs. 1 trillion bullet train project and we will participate in this ambitious project.”
The participation of Reliance in the bullet train project had so far only been mentioned as a rumour and Anil Ambani’s statement is the first official confirmation of the development.
The Reliance Group chairman also told RInfra shareholders that the company was soon planning a rights issue for Reliance Naval & Engineering as the company increases its focus towards the defence vertical which is a sunshine sector in India.
“Our defence vertical Reliance Naval & Engineering will soon come out with a rights issue which will help promoters to increase stake in the company by 5 percentage points to 36 per cent,” Anil Ambani said. He added that his group was serious about increasing its footprint in India’s defence sector despite intense competition
Underlining his commitment to see Reliance succeed in the defence sector, the company’s head honcho said: “Government is shortly going to award contract for six submarines worth Rs. 50,000 crore. With the acquisition of Pipavav, we are one of only two companies strategically positioned to participate to build submarines. For the first time, a private sector firm in the country will be actually building for a submarine.”
The Pipavav Shipyard is one of only two facilities in Asia to have a US Naval warship contract.
Anil Ambani also informed his company’s shareholder that Reliance Naval & Engineering will employ foreign collaboration and learn the defence business with world leaders. Reliance Naval & Engineering has inked a joint venture agreement with Daher, a leading French material and aerostructure composite company which supplies 50 percent of composite material to Boeing and Airbus, a report by news agency PTI said.
Daher is scheduled to move all their facilities to India as per the agreement with Reliance, which will see India become an exporter to Boeing and Airbus of very sensitive composite parts and materials.