Reliance keen to set up aerospace unit in Hyderabad

Mukesh Ambani's Reliance group company, Reliance Aerospace Technologies Private Limited, has expressed interest to set up its first aerospace unit in the country in or around Hyderabad. The company representatives contacted Andhra Pradesh government and requested it to provide land in Hyderabad to set up their first manufacturing unit. Following this, the government asked its officials to identify suitable land and show it to Reliance. A high level delegation from Reliance will visit the city next week and finalise the location.

"Reliance Aerospace Technologies of Mukesh Ambani contacted us with a request for allotment of land, equipped with an airstrip, in or around Hyderabad to test their equipment. We have identified two places on the outskirts of the city," said a top official on condition of anonymity.

With cash reserves of Rs 82,975 crore as on March 31, 2013, Reliance group is one of the major entrants into the aerospace business which is presently being explored by Tata and Mahindra groups as well. Tata group has already set up its first aerospace unit at a special economic zone in Adibatla near Hyderabad to take a plunge into defence, aerospace, aero-structures and homeland security. Mahindra aerospace will set up its unit at HAL industrial area near Bangalore. Indian private sector in military aviation is expected to touch nearly $100 billion by 2020.

"The reason behind Reliance showing interest on Hyderabad is availability of abundant skilled manpower and also infrastructure required for high technology aerospace market. The city has HAL and other defence establishments from where Reliance wanted to grab manpower," said sources.

Reliance Industries Limited last year incorporated a new firm to enter into aerospace and defence ventures. The new business company - Reliance Aerospace Technologies (P) Limited -- has been registered with the Registrar of Companies and it has also applied for a license with Department of Industrial Policy and Promotion to design and develop equipment and components like airframe, engine, radars and the likes for both civilian and military aircraft and helicopters.

According to state industrial department officials, during first phase, Reliance might go in for manufacturing of supplies that are needed by its joint venture partner Boeing which has defence contracts in India worth billions.

"We have identified two sites in Hyderabad but Reliance is keen on a place attached with fully functional air strip. Dundigal, where the Indian Air Force has an airstrip, is also under consideration," said sources.

SOURCE:
TOI