Trump efffect of #MakeinAmerica? Not really. Reliance will bag 15000 cr by repairing 100 of these US Navy ships

RELIANCE DEFENCE SELECTED TO UNDERTAKE REPAIR AND MAINTENANCE WORKS FOR U.S. NAVY AT, PIPAVAV, GUJARAT.

 ONLY INDIAN SHIPYARD TO BE QUALIFIED BY U.S. NAVY IN INDIAN OCEAN REGION 

OVER 100 SHIPS OF U.S. NAVY’S SEVENTH FLEET WILL AVAIL SERVICES AT RELIANCE SHIPYARD.

It is expected that various types of Ships viz. front-line war ships, supply vessels, Patrol Vessels will be part of the fleet.

Reliance, Mumbai, February 13, 2017

Reliance Infrastructure Limited (RInfra) controlled Reliance Defence and Engineering Limited (RDEL) has signed the Master Ship Repair Agreement (MSRA) with U.S. Navy. Earlier in January 2017, the Reliance Shipyard was qualified by U.S. Navy as an approved contractor to perform complex repair and alternation services for the U.S. Navy’s Seventh Fleet vessels operating in the region.

Reliance Shipyard at Pipavav, Gujarat is the first Shipyard in India to have received MSRA Certification to undertake servicing and repairing works for the vessels of Seventh Fleet. The fleet has about 100 vessels of different types including auxiliaries. Currently, the vessels of U.S. Navy’s Seventh Fleet visit Singapore or Japan for such works.

Reliance Shipyard has been selected after a detailed site survey by US Government representatives in end October 2016.

This selection by the U.S. Navy is a true recognition of the world-class facility, processes and the high standard of capability of Reliance Shipyard.

Backgrounder:

 a. After a long period of negotiations, spanning over a decade, India and the United States have signed the logistics pact on 30 Aug 2016 during Defence Minister Manohar Parrikar’s visit to U.S.

b.     LEMOA stands for Logistics Exchange Memorandum of Agreement (LEMOA), a tweaked India-specific version of the Logistics Support Agreement (LSA), which the U.S. has with several countries it has close military to military cooperation.

c. LEMOA gives access, to both countries, to designated military facilities on either side for the purpose of refuelling and replenishment. India and the U.S. already hold large number of joint exercises during which payments are done each time, which is a long and tedious process.

2. Pursuant to signing of LEMOA, U.S. Navy believed to have conducted survey of various Shipyards in India before qualifying Reliance Shipyard at Pipavav as the qualified Shipyard to undertake complex repair and maintenance works.

3.   The 7th Fleet of U.S. Navy visits Singapore and Japan for repairing works.

4.    U.S., which operates in a big way in Asia-Pacific, it will benefit from Indian facilities immensely.

5.   It is expected that various types of Ships viz. front-line war ships, supply vessels, Patrol Vessels will be part of the fleet.

6.    Based on conservative estimation about Rs 15,000 Cr of revenue is estimated for Reliance Defence and Engineering Ltd. over next 3 to 5 years. 

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