New Naval Shipyard for India

Reliance Defence has signed an accord with a provincial Indian government to set up a naval facility along the country's eastern coast with an initial investment of 50 billion rupees ($748 million), the company said on Sunday.

Reliance Defence, a unit of billionaire Anil Ambani's Reliance Infrastructure Ltd, plans to build submarines and aircraft carriers as well as to provide services including maintenance and refitting of ships at the facility.

It will be located 70km (43 miles) south of Visakhapatnam in Andhra Pradesh.

Reliance Chairman Ambani cited estimates saying the Indian navy could spend nearly 200 billion rupees annually over the next 15 years on acquisitions and fleet modernization of submarines and aircraft carriers.

This would generate a "huge pipeline of opportunity", according to a copy of his speech at an industry event released by the company. “India can become a regional superpower only if our maritime capabilities are strengthened through vigorous build up of our surface and sub-surface fleet.

“The U.S. today has 10 aircraft-carrier groups operating around the world to project its power and protect its interests and on course to add another three, while we have barely one. Similarly, while the U.S. has 72 submarines and China 69, India has a
small fleet of 17 submarines,” he said.

“It is the same story other key areas of naval preparedness. The Indian Navy has today just ONE nuclear submarine on lease as compared to China’s dozen. Further, nearly 90 percent of the conventional fleet in the Indian Navy is over 20 years old and due for urgent upgrade and re-fitment. There is a projected requirement of an additional 23 submarines.”

Prime Minister Narendra Modi's government wants a greater role for Indian state and defence firms as the government is forecast to spend $250 billion over the next decade to upgrade its military.

The government has, however, yet to move forward on its plans to build up the submarine fleet, meaning any order for companies including Reliance Defence may be years away.