Defence Ambitions Take Flight: Reliance Infra and Coastal Mechanics Forge Strategic Alliance with Focus on Fighter Jet MRO and MIHAN Expansion

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Reliance Infrastructure Ltd has deepened its defence sector footprint through a strategic partnership with US-based Coastal Mechanics Company, expanding its capabilities in aerospace manufacturing and maintenance. The alliance is now further bolstered by two key developments: a comprehensive maintenance and repair program for Indian fighter aircraft and a new joint venture (JV) to address defence and aerospace opportunities at MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur), Maharashtra.

Here’s a detailed look at the full scope of this Indo-US collaboration and its implications for India’s defence ecosystem.

Expanded Scope of the Strategic Partnership

- The partnership will now include a full-spectrum Maintenance, Repair, and Overhaul (MRO) program for Indian fighter aircraft, including upgrades, avionics integration, and lifecycle support
- This marks Reliance as the first Indian private firm to independently execute military aircraft upgrades without being an original equipment manufacturer
- The JV will be headquartered at MIHAN in Maharashtra, a strategic location with proximity to key defence corridors and logistics infrastructure
- Coastal Mechanics brings decades of experience in precision components for US defence platforms, which will now be localized through Reliance’s facilities

Strategic Rationale and Market Opportunity

- The global aircraft upgrade and MRO market is valued at over Rs 5 lakh crore annually and is projected to reach Rs 7 lakh crore within a decade
- India, with its aging fleet of fighter jets and helicopters, represents a major emerging market for upgrade programs
- Reliance has already completed upgrades for 55 Dornier-228 aircraft in partnership with HAL and Genesys, setting a precedent for future MRO projects
- The MIHAN JV will serve as a hub for co-production, R&D, and export-oriented manufacturing, aligned with India’s Atmanirbhar Bharat and Make in India initiatives

Operational and Financial Outlook

- The partnership is expected to generate long-term recurring revenue through performance-based logistics and global defence contracts
- Reliance Infrastructure is targeting Rs 5,000 crore in revenue from military aircraft upgrades alone
- The company’s defence vertical has seen renewed investor interest, with shares gaining over 45 percent in the past month

As Reliance Infrastructure and Coastal Mechanics scale up their collaboration, the focus on fighter jet MRO and aerospace manufacturing at MIHAN signals a new era of private sector leadership in India’s defence modernization drive.

Sources: Business Today, Deccan Herald, Reliance Infrastructure Regulatory Filings, June 2025