India Boosts Indigenous Defence Capabilities with Rs 39,125 Crore Contracts

New Delhi:  To give fillip to ‘Aatmanirbharta in Defence’ and bolstering the Make-in-India initiative, the Ministry of Defence (MoD) of India has sealed five major capital acquisition contracts valued at Rs 39,125.39 crore. The exchange of contracts took place today in New Delhi, with the distinguished presence of Raksha Mantri Rajnath Singh and Defence Secretary Giridhar Aramane, whose guidance played a pivotal role in bringing these strategic deals to fruition.

These contracts are poised to strengthen indigenous capabilities, reduce dependency on foreign manufacturers, and contribute to the nation’s self-reliance in defence production.

A contract worth Rs 5,249.72 crore has been signed with M/s Hindustan Aeronautics Limited for the procurement of RD-33 Aero Engines for MiG-29 aircraft. Produced by the Koraput Division of HAL, these aero engines, manufactured under Transfer of Technology (TOT) license from the Russian OEM, will sustain the operational capability of the Indian Air Force’s MiG-29 fleet. The program emphasizes indigenization of critical components, enhancing the indigenous content for future Repair and Overhaul (ROH) tasks.

Two contracts, totaling Rs 7,668.82 crore, have been signed with M/s Larsen & Toubro Limited. The CIWS procurement, costing Rs 7,668.82 crore, will provide terminal air defense to select locations, fostering active participation from Indian aerospace, defence, and associated industries. The HPR contract, valued at Rs 5,700.13 crore, will replace existing long-range radars of the Indian Air Force with modern Active Aperture Phased Array based HPR, significantly enhancing terrestrial Air Defence capabilities. Both projects are expected to generate employment opportunities, directly and indirectly, with an average of 2,400 and 1,000 people per year, respectively, over five years.

Contracts worth Rs 19,518.65 crore have been inked with M/s BrahMos Aerospace Private Limited for the procurement of BrahMos missiles. These missiles will cater to the combat outfit and training requirements of the Indian Navy. Another contract, valued at Rs 988.07 crore, has been signed for the procurement of the Ship-borne BrahMos system, the primary weapon for maritime strike operations on various frontline warships. These projects are anticipated to generate substantial employment opportunities, contributing to the development of the indigenous defence ecosystem.

These contracts mark a significant stride towards achieving self-sufficiency in defence manufacturing, fostering innovation, and creating a robust ecosystem that supports the country’s security needs. The Ministry of Defence remains committed to advancing indigenous capabilities and reducing reliance on foreign suppliers in line with the vision of a self-reliant India.