The Defence Acquisition Council has cleared the capacity assessment of Reliance Defence and Engineering Ltd (RDEL).
In effect, it has cleared the road for the company to bid for new orders worth ₹25,000 crore.
RDEL is a wholly-owned subsidiary of Reliance Infrastructure Ltd of the Anil Ambani Group.
Clearance from the council will make the company eligible for all defence projects, particularly for making naval warships and submarines.
The first big order is expected for making four landing platform dock vessels, which are meant for amphibious landings by troops.
The four vessels are expected to cost $4 billion or about ₹25,000 crore.
RDEL aims to fully participate in the Navy’s 10-year acquisition plans, worth over ₹3 lakh crore, with its dry dock of 662 m length and 65 m width.
RDEL is also in the process of building five Naval Offshore Patrol Vessels (NOPV) for the Indian Navy, worth ₹2,500 crore.
These will be the first-ever warships to be constructed at a private shipyard.