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Reliance Defence Partners with US Firm for Military Aircraft MRO in Nagpur

Reliance Defence Partners with US Firm to Establish Military Aircraft MRO Facility in Nagpur
Reliance Infrastructure, under the leadership of Anil Ambani, has announced a significant expansion into the defence sector with plans to develop a maintenance, repair, and overhaul (MRO) facility for military aircraft and equipment at the Mihan Special Economic Zone (SEZ) in Nagpur. This initiative follows the company’s recent decision to manufacture Falcon 2000 business jets in the city and represents the first defence-focused MRO facility in Nagpur, as well as the third of its kind in the region.
Strategic Partnership and Facility Scope
Reliance Defence, a wholly owned subsidiary of Reliance Infrastructure, has entered into a strategic partnership with US-based Coastal Mechanics Inc (CMI) to develop the MRO facility. The collaboration is designed to capitalize on substantial business opportunities, particularly in extending the operational lifespan of the Indian Air Force’s (IAF) ageing fleet. Reliance Defence estimates the potential market value of this venture at approximately ₹20,000 crore over the next decade.
The proposed MRO facility will service a diverse range of platforms, including British-made Jaguars, Russian MiG-29s, legacy L-70 anti-aircraft guns, and Apache attack helicopters. The project is expected to require an initial investment of ₹500 crore and is projected to generate around 200 jobs upon commencement. Reliance Defence currently holds over 180 acres within the Mihan-SEZ, providing ample space for future expansion. This landholding also supports the company’s ongoing collaboration with French aerospace giant Dassault for Falcon jet production.
Phased Development and Operational Focus
Reliance Defence plans to adopt a phased approach, beginning with a comprehensive assessment of the Indian defence forces’ requirements before gradually expanding the facility’s capabilities to cover a broad spectrum of systems. The MRO is anticipated to handle over 100 Jaguars and MiG-29s or Bisons each—aircraft that have been in service with the IAF for more than three decades. This aligns with India’s evolving defence strategy, which emphasizes life cycle extension over outright asset replacement. The facility aims to address challenges related to obsolescence management and to upgrade older platforms with the latest technologies.
In addition to servicing domestic defence forces, Reliance Defence is targeting export markets with ambitions to become one of India’s top three exporters of defence products. This project is poised to be the first in the country capable of overhauling and extending the operational life of aircraft from multiple international origins. The company projects annual revenues of ₹2,000 crore from the MRO, serving not only the IAF but also the Indian Navy and Army.
Challenges and Industry Context
The partnership with CMI brings considerable expertise, particularly in maintaining older fleets, drawing on CMI’s experience with the US Department of Defense. The facility aims to fill critical gaps left when original equipment manufacturers discontinue support for certain subsystems. Reliance Defence does not foresee direct competition with the IAF’s existing base repair depots, as its focus will be on regular overhauls and life cycle extensions, thereby complementing the armed forces’ current maintenance infrastructure.
Nonetheless, the venture faces several challenges, including navigating complex regulatory approvals, ensuring compliance with international standards, and managing the logistical demands of large-scale aircraft maintenance. The MRO sector is highly competitive, with recent trends indicating increased liquidity demands for new-generation engine leasing and strategic expansions by global players such as Embraer in India. These dynamics are likely to attract close scrutiny from defence analysts and investors, while also prompting competitive responses from other firms seeking to establish or enhance their own MRO capabilities.

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