India Bolsters Defense Capabilities and Reduces Reliance on Foreign Equipment with ₹39,125 Crore Deals

India Bolsters Defense Capabilities and Reduces Reliance on Foreign Equipment with ₹39,125 Crore Deals

In a significant boost to India’s self-reliance in defense, the Ministry of Defence (MoD) signed five major capital acquisition contracts worth ₹39,125.39 crore on March 1, 2024. These deals, signed in the presence of Defense Minister Rajnath Singh and Defense Secretary Giridhar Aramane, aim to strengthen domestic defense capabilities, reduce dependence on foreign equipment, and generate significant economic benefits.

Strengthening Air Defense and Sustaining Legacy Fleet:

• MiG-29 Upgrade: A ₹5,249.72 crore contract with Hindustan Aeronautics Limited (HAL) will see the procurement of RD-33 aero-engines for MiG-29 fighter jets. These engines, produced by HAL’s Koraput Division, will ensure the operational readiness of the IAF’s MiG-29 fleet for its remaining service life. The project, involving technology transfer from Russia, will also focus on indigenizing critical components for future maintenance and overhaul of these engines.

Enhancing Maritime Defense and Creating Job Opportunities:

• Close-in Weapon System (CIWS): A ₹7,668.82 crore contract with Larsen & Toubro (L&T) will provide terminal air defense for strategic locations across India. This project not only strengthens the nation’s defense but also fosters active participation of Indian companies, including MSMEs, in the aerospace and defense sector. The project is estimated to generate an average of 2,400 direct and indirect jobs annually over five years.
• High-Power Radar (HPR): L&T has also secured a ₹5,700.13 crore contract for the procurement of HPRs. These modern radars, featuring Active Aperture Phased Array technology, will replace existing long-range IAF radars, significantly enhancing terrestrial air defense capabilities. This project marks a milestone in indigenous radar manufacturing, being the first such radar built by the Indian private sector. It is expected to generate an average of 1,000 direct and indirect jobs annually for five years.
• BrahMos Missiles: A ₹19,518.65 crore contract with BrahMos Aerospace Private Limited (BAPL) will see the procurement of BrahMos missiles for the Indian Navy. These missiles will fulfill the combat training and operational needs of the Navy. The project is estimated to generate significant employment opportunities, with around 9 lakh man-days in the joint venture and 135 lakh man-days in associated industries, including MSMEs.
• Shipborne BrahMos System: Another contract worth ₹988.07 crore with BAPL will see the procurement of the Shipborne BrahMos system, the Indian Navy’s primary weapon for maritime strike operations. This system, known for its high accuracy and supersonic speed, equips various frontline warships. The project is expected to generate around 60,000 man-days of employment over 7-8 years.

These contracts represent a significant step forward in India’s “Aatmanirbhar Bharat” (Self-Reliant India) mission, promoting self-reliance in the critical defense sector while creating substantial employment opportunities and fostering domestic technological advancements.

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