The Ministry of Defence (MoD) has inked five major capital acquisition contracts worth Rs 39,125.39 crore, with an aim to bolstering indigenous defence capabilities and promoting the ‘Make-in-India’ initiative. The contracts, exchanged in New Delhi on Friday, were formalized in the presence of Raksha Mantri Rajnath Singh and Defence Secretary Giridhar Aramane, marking a milestone in the nation’s self-reliance in defence production.
Among these crucial contracts, one stands with M/s Hindustan Aeronautics Limited (HAL) for the procurement of Aero-engines designated for MiG-29 aircraft, emphasizing the need to sustain the operational capability of the Indian Air Force (IAF). This contract, valued at Rs 5,249.72 crore, will see the production of aero-engines by HAL’s Koraput Division under Transfer of Technology (TOT) license from the Russian OEM. It aims to boost indigenous content for future Repair and Overhaul (ROH) tasks of RD-33 aero-engines, further reducing dependency on foreign manufacturers.
Furthering the commitment to self-sufficiency, two contracts have been awarded to M/s Larsen & Toubro Limited. The first, valued at Rs 7,668.82 crore, is for the procurement of Close-in Weapon System (CIWS) to provide terminal Air Defence to select locations in the country. The second contract, worth Rs 5,700.13 crore, is for the procurement of High-Power Radar (HPR) aimed at enhancing the terrestrial Air Defence capabilities of the IAF. The HPR project marks a significant milestone as the first-of-its-kind radar to be built by the private sector in India, signaling a boost to indigenous radar manufacturing technology.
Additionally, two contracts with M/s BrahMos Aerospace Private Limited (BAPL) have been signed. The first, valued at Rs 19,518.65 crore, is for the procurement of BrahMos missiles to meet combat outfit and training requirements of the Indian Navy. This project is expected to generate substantial employment opportunities, with an estimated nine lakh man-days in the Joint Venture entity and around 135 lakh man-days in ancillary industries, including MSMEs, across the country.
The second contract with BAPL, valued at Rs 988.07 crore, is for the procurement of the Shipborne BrahMos system, the Indian Navy’s primary weapon for maritime strike operations. This system, fitted on various frontline warships, boasts the capability to hit land or sea targets with pinpoint accuracy at supersonic speeds. The project is projected to generate approximately 60,000 man-days of employment over a span of 7-8 years.




























