Reliance Bets ₹5,000 Cr on Defence Aircraft Upgrades
Reliance Infrastructure has announced a major foray into India’s defence aviation sector by committing ₹5,000 crore over the next 7 to 10 years to military aircraft upgrades. This marks a significant moment in Indian defence history as it is the first time a private Indian firm is independently carrying out complete aircraft upgrades without direct dependency on original equipment manufacturers (OEMs). The initiative is seen as a strategic boost to India’s Make in India and Atmanirbhar Bharat efforts in the defence sector.
Dornier 228 Upgrades Set the Tone
The initial breakthrough has come through the successful retrofitting of 55 Dornier 228 aircraft for Indian defence services. The project, undertaken in partnership with Hindustan Aeronautics Limited (HAL) and U.S.-based avionics supplier Genesys, began with 37 aircraft and was later extended by 18 more due to its demonstrated effectiveness. These upgraded aircraft are now in service with the Indian Air Force, Navy, and Coast Guard, establishing Reliance’s technical capability and operational reliability.
The success of the Dornier program has laid a strong foundation for Reliance to expand its focus to other legacy fixed-wing and rotary aircraft in India’s defence fleet, including potential upgrades of helicopters and combat platforms.
Expanding Capabilities and Eyeing Global MRO Market
With global spending on defence Maintenance, Repair and Overhaul (MRO) projected to rise from ₹5 lakh crore to ₹7 lakh crore, Reliance sees an opportunity to position itself as a major player. Military aircraft typically remain in service for three to four decades, and mid-life upgrades—especially to avionics, mission systems, and safety technologies—often cost two to three times the original price of acquisition.
Reliance is also exploring partnerships with global players such as Thales, particularly in relation to performance-based logistics for the Rafale fleet, which could pave the way for international upgrade contracts and recurring service revenues. The firm plans to scale operations for both domestic defence needs and future export opportunities.
Strategic Implications for India’s Defence Ecosystem
This venture is strategically aligned with the government’s vision to enhance indigenous defence production and reduce reliance on imports. By entering the military MRO segment, Reliance is not only diversifying its infrastructure portfolio but also helping to build domestic technical capacity in high-value, high-complexity defence operations.
The ₹5,000 crore investment signals the emergence of private industry as a serious force in India’s defence preparedness and sustainability, potentially opening doors for a new class of defence logistics and upgrade contractors.
If executed successfully, Reliance Infrastructure’s aircraft upgrade initiative could reshape the country’s defence support landscape, generate long-term revenue streams, and position India as an international hub for military MRO services.
