In the on-going restructuring exercise, Skil Infrastructure has initiated the process of selling its non-core assets worth Rs 750cr. The assets identified for sale include real estate and the changes are being made to take advantage and bid aggressively for the $247-billion defence contracts to be awarded by the Indian government in the near future. The government wants local private companies to bag a sizeable portion of these orders to avoid paying in foreign exchange to companies abroad. Another big chunk of orders worth $55 billion to make and maintain oil rigs and ships will come from the oil and gas sector, which is investing heavily to develop energy assets in India. Top Indian companies led by Reliance, Mahindras, L&T and the Tatas are in the race to get a slice of these orders. Apart from this, Pipavav Defence is working to raise equity at the holding company and subsidiaries to improve the balance sheet further. It has roped in a $160-billion Swedish multinational, SAAB (Wallenberg group), as equity partner in Pipavav Defence. According to the deal, SAAB will bring in proprietary technology to build missile systems, underwater systems and other combat systems for the first time in India.
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