Reliance Defence Deal: This week, Anil Ambani-led Reliance Infrastructure announced a strategic joint venture (JV) with US defence contractor Coastal Mechanics Inc., marking a monumental step into India’s ₹20,000 crore defence MRO (maintenance, repair, and overhaul) market. The newly-formed Reliance Defence JV pact will cater to both Indian and global defence forces, aligning closely with the Indian government’s Aatmanirbhar Bharat and Make in India visions.
The JV will be headquartered at MIHAN (Multi-modal International Cargo Hub and Airport) in Maharashtra, a key defence and aerospace manufacturing hub. This pact signals India’s shift from importing to indigenising critical defence support, offering end-to-end lifecycle services for platforms like Jaguar and MiG-29 jets, Apache helicopters, and legacy artillery systems.
Strategic Defence Pact: Key Details You Must Know
Reliance Defence, a fully owned arm of Reliance Infrastructure, signed the strategic JV agreement this week with Coastal Mechanics Inc., a US-based DoD-authorised defence contractor. Coastal Mechanics has decades of experience in supporting the US Army and Air Force through high-precision parts and lifecycle solutions.
Under this collaboration:
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A new JV unit will be created at MIHAN to cater to both domestic and export markets.
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The JV will focus on comprehensive MRO, upgrade, and performance-based logistics services.
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Platforms covered include over 100 Jaguar aircraft, 100+ MiG-29s, Apache helicopters, and L-70 air defence guns.
This deal not only brings global expertise into India but also creates a domestic ecosystem to support long-term sustainment of high-value defence assets.
Also Read: Reliance Infra Export Order: Rheinmetall’s ₹600 Cr Deal Boosts India’s Global Defence Ambitions
Why the MRO Segment Is a Gamechanger for India?
India’s defence landscape is evolving from asset replacement to lifecycle extension, making MRO and upgrade services vital. Rather than buying new platforms, the armed forces are focusing on modernising and sustaining existing systems, especially with platforms nearing obsolescence.
As per industry experts:
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The MRO and defence upgrade market in India is valued at around ₹20,000 crore.
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This segment ensures cost-efficiency and tactical readiness, especially in times of global supply chain disruptions.
The JV will reduce India’s dependence on imported spare parts and foreign servicing, while also opening export opportunities for Indian-made defence systems.
Coastal Mechanics: A Trusted Global Partner
Founded in 1975, Coastal Mechanics has completed thousands of US government contracts, supporting everything from armaments to defence electronics. It is a certified US DoD contractor supplying custom-built components for:
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US Army’s FMS (Foreign Military Sales) programmes
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Obsolescence management of weapon platforms
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Critical aviation and land-based systems
Their collaboration with Reliance Defence will enable technology transfer, local manufacturing, and skills development for Indian engineers, making it a strategic fit for both nations.
A Major Push Towards Aatmanirbhar Bharat
Reliance Defence aims to be among the top three Indian defence exporters, and this JV is a crucial milestone toward that vision. The move directly supports:
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Aatmanirbhar Bharat by boosting local defence manufacturing
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Make in India by reducing foreign dependency
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Skill India through upskilling the workforce in precision defence engineering
According to the official release, this long-term partnership is expected to generate high-value jobs, strengthen India’s global defence presence, and contribute to national security by ensuring availability of spare parts and upgrade capabilities within India.
Conclusion: A Long-Term Vision, Not Just a Deal
The Reliance Defence JV pact is more than just a business agreement—it’s a strategic realignment of India’s defence priorities. With a massive ₹20,000 crore opportunity at stake, the partnership is poised to set new benchmarks for indigenous MRO services, platform upgrades, and defence exports.
This development is a clear sign of India’s rising stature in global defence manufacturing and an example of how Indian private players are actively contributing to national security.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
