Anil Ambani-led Reliance Infrastructure Ltd said its fully owned subsidiary, Reliance Defence Ltd (RDL), has signed a MoU with Abu Dhabi Ship Building (ADSB) to set up a strategic partnership for the construction of naval ships, including frigates, destroyers and other specialized vessels to address the Gulf Cooperation Council (GCC) over the next 10 years.
In a filing to the Bombay Stock Exchange, the company informed, "Reliance Defense and Abu Dhabi Shipbuilding sign MOU for naval and commercial services."
ADSB is a leading provider of construction, repair and refit services for naval, military and commercial vessels.
"Under this MoU, RDL and ADSB are investigating the opportunity to set up a strategic partnership for the construction of naval ships - including frigates, destroyers and other specialized vessels to address the Gulf Cooperation Council (GCC) over the next 10 years," Reliance Infrastructure Ltd said in a statement.
The agreement could also see ADSB delivering maintenance, repair, overhaul and refit services to the vessels, in line with regional requirements, it said.
Reliance Group is likely to use its newly acquired ship-building facilities at Pipavav for implementation of this collaboration.
The MoU signing follows the joint statement issued during Prime Minister Narendra Modi's visit to UAE on August 18, 2015 which highlighted 'cooperation and manufacture of defence equipment in India'.
Skills developed and the experience gained through this collaboration will further add to Reliance Group's capabilities and position it favourably as a strategic partner for Indian Navy's future programmes encompassing aseas such as Combat Management Systems (CMS), Integrated Bridge Solutions (IBS), Combat System Integration (CSI), Integrated Platform Management Systems (IPMS) and staff training and development, the statement said.
This potential collaboration could help both companies expand their market share and address new opportunities, it said.
Meanwhile, shares of Reliance Infrastructure closed at Rs 326.30 apiece, up 0.68 per cent, from previous close on BSE.