- March 2, 2024
India Boosts Defence Capabilities and Reduces Reliance on Foreign Equipment with ₹39,125 Crore Deals

India Boosts Defence Capabilities and Reduces Reliance on Foreign Equipment with ₹39,125 Crore Deals
In a significant move towards self-reliance in defence, the Indian Ministry of Defence (MoD) signed five major capital acquisition contracts worth ₹39,125.39 crore on March 1, 2024. These deals, signed under the Aatmanirbharta in Defence and Make in India initiatives, aim to strengthen domestic capabilities, reduce dependence on foreign equipment, and generate significant employment opportunities.
Key Highlights of the Deals:
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MiG-29 Fighter Jet Upgrades: A contract worth ₹5,249.72 crore was signed with Hindustan Aeronautics Limited (HAL) to procure RD-33 aero engines for MiG-29 aircraft. These engines, manufactured by HAL’s Koraput division, will ensure the operational readiness of the Indian Air Force’s MiG-29 fleet. Additionally, a technology transfer agreement will enable the indigenization of critical components, reducing reliance on foreign manufacturers for future maintenance and repair.
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Enhanced Air Defence Systems: Larsen & Toubro (L&T) secured two contracts worth a combined ₹13,368.95 crore. The first, valued at ₹7,668.82 crore, involves the procurement of Close-in Weapon Systems (CIWS) to bolster terminal air defence capabilities at strategic locations across the country. This project will not only strengthen India’s air defence but also promote the participation of Indian companies, including MSMEs, in the aerospace and defence sectors, generating an estimated 2,400 jobs annually over five years.
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Modernized Radar Technology: The second L&T contract, worth ₹5,700.13 crore, focuses on the procurement of high-power radars (HPR). These advanced radars, featuring Active Aperture Phased Array technology, will replace existing long-range IAF radars, significantly enhancing terrestrial air defence capabilities. Notably, this project marks a milestone as the first of its kind radar built by the Indian private sector, fostering domestic radar manufacturing expertise. Additionally, it is expected to create approximately 1,000 jobs annually over five years.
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Boosting Naval Power: BrahMos Aerospace Private Limited (BAPL) secured two contracts totaling ₹20,506.72 crore. The first, valued at ₹19,518.65 crore, involves the procurement of BrahMos missiles to equip the Indian Navy, bolstering its combat capabilities and training readiness. This project is estimated to generate significant employment opportunities, including around nine lakh man-days in BAPL’s joint ventures and 135 lakh man-days in Indian ancillary industries, including MSMEs.
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Strengthening Maritime Strike Capabilities: The second BAPL contract, worth ₹988.07 crore, focuses on the procurement of Shipborne BrahMos systems, the Indian Navy’s primary weapon for maritime strike operations. This system, capable of striking land or sea targets with pinpoint accuracy at supersonic speeds, will further strengthen India’s maritime defense capabilities. The project is expected to generate employment of around 60,000 man-days over 7-8 years.
These deals represent a significant step towards achieving self-reliance in the Indian defence sector. By promoting domestic production and technological advancements, these initiatives not only strengthen India’s defence capabilities but also contribute to economic growth and job creation.