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Reliance Infrastructure (RInfra) hopes to complete acquisition of Pipavav Defence and Offshore this fiscal.
The group’s entry into the defence sector is in line with Prime Minister’s Narendra Modi’s plans of Make in India and skill enhancement programme, said Chairman Anil Ambani on Wednesday.
Addressing the shareholders during the Annual General Meeting (AGM), Ambani said that defence manufacturing and smart cities were the two growth drivers for the company.
To further enhance the defence business, a Naval System Development Centre of Excellence will come up at Pipavav in Gujarat.
An Aerospace Center of Excellence would be set up at MIHAN in Nagpur, while Bengaluru will get a technology and innovation centre.
Discussions are also on with international defence majors for strategic partnerships, he said.
In March, RInfra had acquired 18 per cent stake in Pipavav Defence and Offshore.
It is required to make an open offer to buy up to 26 per cent stake of Pipavav's public shareholders.
The Chairman said if the company has to enter the Naval business it could not do without a shipyard.
It hopes that the acquisition process would be completed this fiscal and would serve defence requirements in air, land and sea. On smart cities initiatives, Ambani said that 100 cities have been notified and with the group’s capabilities in utilities, transport and telecom, it would be in a position to provide one stop integrated solution for the cities.
He pointed that the company’s capex cycle has been complete and over ₹30,000 crore spent in the last six years.
Next financial year shareholders will see the full impact of cash flows.
RPower capexAlso addressing the shareholders at Reliance Power (RPower) AGM, Ambani said that the company has completed Phase-I of ₹50,000 crore capex programme in record time and now has 6,000 MW operating capacity.
The company is also the largest private sector coal producer in the country.
Bangladesh projectIt has signed an MoU with Bangladesh for setting up 3,000 MW gas-based power project and has proposed to relocate equipment from 2,250 MW Samalkot project to Bangladesh, he said.
A statement issued by RPower said that the board will consider making the first maiden dividend payment this year.
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