Nagpur: After the move to make Falcon 2000 business jet at Nagpur, Anil Ambani-led Reliance Infrastructure on Tuesday announced plans to set up a maintenance, repair and overhaul (MRO) depot for military aircraft and equipment at Mihan-SEZ here. If this plan works out, this would be the third MRO in Nagpur and first catering to defence sector. Reliance Defence — Reliance Infrastructure’s wholly owned subsidiary — has tied up with the US’s Coastal Mechanics Inc (CMI). It eyes massive business through life cycle extension orders for some of the ageing fleet of the Indian Air Force (IAF). Reliance pegs the volume of business at Rs20,000 crore. The tie-up will enable it to cater to building new platforms and upgrading whole gamut of aircraft from British-made Jaguar, Russian MiG-29s, the legacy L-70 anti-aircraft guns to even Apache attack helicopters.The proposed military aircraft and equipment MRO will be part of the overall project. The plan is to first assess the market based on the Indian defence forces’ requirements. The company would step-by-step create facilities for various systems on the basis of what the armed forces need.The company’s Nagpur unit is expected to entail an investment of ₹500 crore and create close to 200 jobs as it opens.Reliance Defence has a land pool of over 180 acres in the Mihan-SEZ and earlier this month it announced plans to make Falcon business jet at Nagpur in collaboration with French aviation giant Dassault. Reliance Defence is also eyeing export market from its proposed unit here, said a source who is part of the development. The company aims to become one of the top three exporters of defence products.This would be the first-ever project where aircraft of multiple country origins would get an overhaul and life cycle extension. The MRO has a projected capacity to cater to over 100 Jaguar and MiG-29 or Bisons each, both in service for more than three decades with the Indian Air Force (IAF). Other than the latest assets like the Rafale or the LCA, the IAF continues to hold a sizeable fleet of older aircraft. These need obsolescence management through life cycle extension and the installation of the latest platforms. Reliance eyes a yearly business of Rs2,000 crore on this front, easily clocking Rs20,000 crore in a decade, said a source. This includes systems and aircraft with the IAF, as well as the Navy and Army, the source added. The plans are driven by a strategic shift of India from asset replacement to life cycle expansion. CMI has expertise in catering to old fleets and has successfully worked for the US department of defence. Managing the older fleet also has challenges. At times, even the original equipment manufacturers (OEM) stop certain sub-systems. This is where the Reliance facility aims to step in, the source said. As the MRO is proposed to take up regular overhaul, apart from providing a new lease of life, Reliance Defence does not see any direct competition with the IAF’s existing setup — base repair depots (BRDs) spread across the country. It would only complement the existing ecosystem and fill up the gaps wherever required, the source added.CMI is an active vendor of the US Army since 1975, supporting armament and defence obsolescence management. It has completed thousands of contractual engagements for the manufacture and supply of spare parts needed for the direct utilisation of the weapon systems. It also has access to critical data by virtue of the DD2345 agreement for over four decades, said a note shared by Reliance Defence.Reliance Defence, on the other hand, has made a series of announcements on the defence front. These include its plans to make 155 mm shells, a key artillery ammunition, based in India. It also makes parts of the Rafale aircraft. Given the current geopolitical situation, the company sees a sizeable scope for domestic players in the defence sector, the source said. The two major companies of the group, Reliance Infrastructure and Reliance Power, are debt-free with a net worth of ₹33,000 crore, said a note shared by the company.Eyeing Defence PieOnce operational, Nagpur will have three aircraft MROs The first two, run by Air India Engineering Services Limited and Indamer Aviation, cater to commercial aircraft like Boeing and AirbusThis would be the first military aircraft MRO, also planned in MihanReliance Defence already makes components for Rafael and Falcon at Mihan Nagpur Reliance model is on life cycle extension of legacy aircraft and systemsThe move gives a major fillip to defence industries in VidarbhaFalcon that would roll out from Mihan-SEZ would be the first business jet made in IndiaNagpur also has a unit making air bombs Reliance also runs a unit in collaboration with Thales for make aircraft systems
