India's Ministry of Defence Signs Contracts Worth Rs 39,125.39 Crore

In a significant move towards self-reliance in defence, India's Ministry of Defence (MoD) signed five major capital acquisition contracts totaling Rs 39,125.39 crore on March 1, 2024, in New Delhi. The contracts, exchanged in the presence of Defence Minister Shri Rajnath Singh and Defence Secretary Shri Giridhar Aramane, aim to strengthen indigenous capabilities, promote the Make-in-India initiative, and reduce dependency on foreign equipment manufacturers.

The contracts include one with Hindustan Aeronautics Limited (HAL) for Aero-engines for MiG-29 aircraft, two with Larsen & Toubro Limited for Close-in Weapon System (CIWS) and High-Power Radar (HPR), and two with BrahMos Aerospace Private Limited for BrahMos missiles and the Ship-borne BrahMos system.

The contract with HAL, valued at Rs 5,249.72 crore, focuses on the procurement of RD-33 Aero Engines for MiG-29 aircraft. The engines, manufactured under Transfer of Technology from the Russian OEM, aim to sustain the operational capability of the MiG-29 fleet.

Larsen & Toubro Limited secured contracts worth Rs 7,668.82 crore for CIWS and Rs 5,700.13 crore for HPR. CIWS will provide terminal air defence to select locations in the country, boosting the participation of Indian aerospace and defence industries, including MSMEs. HPR will replace existing long-range radars of the Indian Air Force, significantly enhancing terrestrial air defence capabilities.

BrahMos Aerospace Private Limited clinched contracts worth Rs 19,518.65 crore for the procurement of BrahMos missiles and Rs 988.07 crore for the Ship-borne BrahMos system. These contracts will meet the combat and training needs of the Indian Navy, generating significant employment and bolstering the country's defence capabilities.

The contracts reflect India's commitment to executing mega-projects seamlessly, showcasing its determination to achieve self-reliance in the defence sector.