Defence ministry approves Rs39,126-cr contract for domestic equipment makers

The defence ministry on Friday signed five major contracts with local defence equipment manufacturers for capital acquisition worth a total Rs39,125.39 crore, as part of the government’s `Make-in-India’ initiative.

The five contracts include procurement of aero-engines for MiG-29 aircraft with Hindustan Aeronautics Limited; procurement of Close-in Weapon System (CIWS) and High-Power Radar (HPR) with Larsen & Toubro Limited; and procurement of BrahMos missiles and its Naval variant with BrahMos Aerospace Private Limited (BAPL).

The contract for RD-33 Aero Engines for MiG-29 aircraft awarded to Hindustan Aeronautics Limited (HAL) is worth Rs5,249.72 crore. HAL will manufacture the aero engines at its Koraput Division of HAL under license from the Russian manufacturer. These are needed to sustain the operational capability of the MiG-29 fleet with the Indian Air Force.

The contract for Close-In Weapon System (CIWS), signed with Larsen & Toubro Limited worth Rs7,668.82 crore, will make available terminal air defence system at select locations of the country. The project will involve active participation from aerospace, defense, and related industries, including MSMEs. It will also generate about 2,400 direct and indirect employment annually over a five-year period.

The contract for HPR, also signed with Larsen & Toubro Limited worth Rs5,700.13 crore, will help replace existing long-range radars of lAF with modern Active Aperture Phased Array based HPR. With its advanced surveillance features, HPR will significantly enhance the terrestrial air defence capabilities of IAF. It will boost to indigenous radar manufacturing technology and generate annual employment of 1,000 over a 3-year period.

The contract for BrahMos missiles, signed with BrahMos Aerospace Private Limited (BAPL), worth Rs19,518.65 crore, will be utilised to meet combat outfit and training requirements of Indian Navy. The project is expected to generate employment of nine lakh man-days in the joint venture and around 135 lakh man-days in ancillary industries, iincluding MSMEs. 

A separate contract for ship borne BrahMos system, worth Rs988.07 crore, has also been signed with BrahMos Aerospace. These missiles, capable of hitting land or sea targets from extended ranges with pinpoint accuracy at supersonic speeds, are the Indian Navy's primary weapon for maritime strike operations. The contract is expected to generate employment of around 60,000 man-days over a period of 7-8 years.

These contracts will further strengthen indigenous capabilities, save foreign exchange and reduce dependency on foreign equipment manufactures.