Defence ministry inks five major capital acquisition contracts worth ₹39,125 cr

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Defence ministry inks five major capital acquisition contracts worth ₹39,125 cr

Defence 01 Mar 2024 05:47 PM IST CNBC

The Ministry of Defence (MoD) inked five major agreements for ₹39,125.39 crore in New Delhi on March 1, 2024, in a significant effort to boost India's defence self-reliance. In the presence of Defence Secretary Giridhar Aramane and Defence Minister Rajnath Singh, the contracts were finalised.

This strategic move, executed as part of the 'Aatmanirbharta in Defence' initiative, aims to amplify the Make-in-India campaign in the defence sector. Among the five contracts, one noteworthy deal was sealed with Hindustan Aeronautics Limited, involving the procurement of Aero-engines for MiG-29 aircraft, at a cost of ₹5,249.72 crore.

The Koraput Division of HAL will undertake the production of these aero engines, providing vital support to the operational capability of the Indian Air Force's MiG-29 fleet. “The aero-engines will be manufactured under Transfer of Technology (TOT) license from the Russian OEM. The program will focus on indigenisation of several high-value critical components, which would help increase the indigenous content of future Repair and Overhaul (ROH) tasks of RD-33 aero-engines,” the ministry said in a release.

Larsen & Toubro Limited secured two contracts, the first being the procurement of Close-in Weapon System (CIWS) at a cost of ₹7,668.82 crore. This system is set to offer terminal air defense to specific locations in the country. “The project will boost and encourage the active participation of Indian aerospace, defense, and associated industries, including MSMEs,” the ministry informed, adding that the deal is expected to generate direct and indirect employment for an average of 2,400 persons per year over a five-year period.

The second deal with Larsen & Toubro Limited involves the procurement of High-Power Radar (HPR) at a cost of ₹5,700.13 crore. This cutting-edge radar system will replace existing long-range radars of the Indian Air Force, significantly enhancing terrestrial air defence capabilities.

The project is a milestone for indigenous radar manufacturing technology, as it marks the first radar of its kind built by the private sector in India. “The direct and indirect employment generated by this project would be approximately an average of 1,000 people/year over the period of five years,” it informed.

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Defence ministry inks five major capital acquisition contracts worth ₹39,125 cr

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