MoD Signs Contracts Worth over 32,000 Cr. with Indian Companies

Ministry of Defence (MoD) has signed multiple contracts amounting to approximately Rs. 32,100 crore with Indian companies for procurement of defence equipment for the Indian Army and Navy. This information was conveyed via a series of releases by the MoD on 30th March 2023.

These procurements will be done under the Buy Indian Category, meaning that at least 50% of components by cost of the procured equipment will be designed and manufactured indigenously.

MoD Signs Contracts worth 19,600 Cr. for Next Generation Offshore Patrol Vessels & Missile Vessels

MoD stated in a PIB release that it has signed two contracts collectively worth Rs. 19,586 crore with Indian shipyards for the procurement of 11 Next Generation Offshore Patrol Vessels and 6 Next Generation Missile Vessels (NGMVs).

For the Next Generation Offshore Patrol Vessels, a Rs. 9,781 crore contract has been signed with Goa Shipyard Ltd (GSL) and Garden Reach Shipbuilders and Engineers (GRSE), Kolkata. GSL and GRSE will be designing, developing and manufacturing 7 out of these 11 vessels indigenously, and the delivery of the contracted vessels is scheduled to commence in 2026. Work under this contract is expected to create employment opportunity of 110 lakh man-days over the next seven and a half years. These vessels will enable the Indian Navy to carry out operations such as Counter-Infiltration, Anti-Piracy, Anti-Poaching, Non-Combatant Evacuation Operations, Search and Rescue (SAR), Anti-Trafficking, Protection of Offshore Assets, and so on.

For Next Generation Missile Vessels, MoD has signed a contract worth Rs. 9,805 crore with Cochin Shipyard Limited (CSL). NGMVs are heavily armed vessels which have been designed to be used in warfare for offensive and defensive purposes. These vessels can achieve high speeds and possess stealth and attack capabilities. Delivery of these vessels is expected to start in March 2027. Work under this contract is envisioned to generate about 45 lakh man-days of employment in the next 9 years.

Improved Akash Weapon System & Swathi Weapon Locating Radars to be Procured for Indian Army

Separately, MoD has signed contracts of an aggregate value of about Rs. 9,100 crore for procurement of improved Akash Weapon System (AWS) and 12 Swathi Weapon Locating Radars (WLRs) for the Indian Army.

Contract for the improved AWS, worth about Rs. 8,160 crore, has been signed with Bharat Dynamics Limited. This system will be procured for the 3rd & 4th Regiments of Army Air Defence and comprises live Missiles and Launchers, and associated vehicles and Ground Support Equipment. The AWS is a Short Range Surface to Air Missile (SRSAM) defence system, which has been designed by the Defence Research and Development Organisation (DRDO). MoD stated that work worth about 60% of the project cost will be assigned to the private sector, especially to Micro Small and Medium Enterprises (MSMEs).

For the supply of 12 Swathi WLRs, MoD has signed a Rs. 990 crore contract with Bharat Electronic Limited (BEL). These indigenously developed Weapon Locating Radars can detect ammunition such as mortars, guns and rockets.

Gun Fire Control System Contract worth Rs. 1,700 Cr. Signed with BEL

MoD further stated in a separate PIB release that it has signed a contract worth Rs. 1,700 crore with Bharat Electronics Ltd. (BEL) for the procurement of 13 Lynx-U2 Fire Control Systems for the Indian Navy. Lynx-U2 Fire Control System is an indigenously-developed Naval Gun Control System.

These systems will be installed on the aforementioned New Generation Offshore Patrol Vessels which will be built by GSL and GRSE.

MoD Signs Rs. 1,700 Cr. Contract with BrahMos Aerospace

Another release by the Ministry of Defence dated 30th March 2023 stated that MoD has signed a contract worth Rs. 1,700 crore with BrahMos Aerospace Private Ltd. (BAPL) for procurement of Long Range Next-Generation Maritime Mobile Coastal Batteries (NGMMCB) and BrahMos missiles.

These contracted NGMMCBs will be equipped with BrahMos missiles which will add to the Indian Navy’s maritime strike capability. Delivery of these Long Range NGMMCBs will begin in 2027, and this project is expected to create 90,000 man-days of employment in the next four years.