Govt inks Rs 39,000-crore defence acquisition contracts to boost ‘Aatmanirbharta’

India's Defence Ministry seals contracts with HAL, L&T, and BrahMos Aerospace for a range of critical acquisitions totaling Rs 39,125.39 crore. (Image:Indian Navy)


As part of ‘Aatmanirbharta in Defence’, the government on Friday signed five major capital acquisition contracts worth Rs 39,125.39 crore.

The contracts, aimed at boosting the Make-in-India initiative, were exchanged in the presence of Defence Minister Rajnath Singh and Defence Secretary Giridhar Aramane.

Out of the five contracts, one was with M/s Hindustan Aeronautics Limited for the procurement of Aero-engines for MiG-29 aircraft, two with M/s Larsen & Toubro Limited for the procurement of Close-in Weapon System (CIWS) and procurement of High-Power Radar (HPR) and two with M/s BrahMos Aerospace Private Limited (BAPL) for the procurement of BrahMos missiles and procurement of Shipborne BrahMos system for the Indian Defence Forces.

These deals will further strengthen indigenous capabilities, save foreign exchange and reduce dependency on foreign-origin equipment manufactures in future, the Ministry of Defence (MoD) said.

The contract for RD-33 Aero Engines for MiG-29 aircraft has been signed with M/s Hindustan Aeronautics Limited (HAL) at a cost of Rs 5,249.72 crore. These aero engines will be produced by the Koraput Division of HAL. They are expected to fulfill the need of the Indian Air Force (IAF) to sustain the operational capability of the MiG-29 fleet for the residual service life. The aero engines will be manufactured under a Transfer of Technology (TOT) license from the Russian OEM.

The contract for the procurement of CIWS has been signed with M/s Larsen & Toubro Limited at a cost of Rs 7,668.82 crore. CIWS will provide terminal Air Defence to select locations in the country. The project will boost and encourage active participation of Indian aerospace, defence and associated industries including MSMEs.

The contract for the procurement of HPR has also been signed with M/s Larsen & Toubro Limited at a cost of Rs 5,700.13 crore. It will replace existing long-range radars of lAF with modern Active Aperture Phased Array-based HPR with advanced surveillance features. It will significantly enhance the terrestrial Air Defence capabilities of IAF with the integration of sophisticated sensors capable of detection of small Radar Cross Section targets.

The contract for the procurement of BrahMos missiles has been signed with M/s BrahMos Aerospace Private Limited (BAPL) at a cost of Rs 19,518.65 crore. These missiles would be utilised to meet the combat outfit and training requirements of the Indian Navy. This project is likely to generate employment of nine lakh man-days in Joint Venture entities and around 135 lakh man-days in ancillary industries (including MSMEs) of the country.

The contract for the procurement of the Shipborne BrahMos system has also been signed with M/s BrahMos Aerospace Private Limited (BAPL) at a cost of Rs 988.07 crore. This system is the Indian Navy’s primary weapon for maritime strike operations fitted onboard various frontline warships.