In a significant move toward self-reliance in defense under the “Aatmanirbharta in Defence” initiative and to further promote the Make-in-India program, the Indian Ministry of Defence (MoD) has signed five major defense acquisition contracts totaling approximately $5 billion USD. Among these contracts, one was signed with Hindustan Aeronautics Limited (HAL) for the acquisition of aero-engines for MiG-29 aircraft, two with Larsen & Toubro Limited for the purchase of Close-in Weapon Systems (CIWS) and High-Power Radars (HPR), and two more with BrahMos Aerospace Private Limited (BAPL) for the procurement of BrahMos missiles and ship-borne BrahMos systems for the Indian Defense Forces.
These agreements are part of a broader strategy to reduce India’s dependence on foreign equipment manufacturers and to encourage domestic production. The contract for RD-33 Aero Engines for MiG-29 aircraft was signed with HAL for a cost of US $627 million. These aero-engines will be produced by HAL’s Koraput Division and are expected to meet the operational needs of the Indian Air Force (IAF) for the remaining service life of the MiG-29 fleet. The aero-engines will be manufactured under a Transfer of Technology (TOT) license from the Russian OEM, focusing on the indigenization of several high-value critical components to increase the indigenous content in future repair and overhaul tasks of RD-33 aero-engines.
The CIWS purchase contract was finalized with Larsen & Toubro Limited for US $900 million. The CIWS will provide terminal air defense at select locations across the country, encouraging active participation from Indian aerospace, defense, and related industries, including MSMEs. This project is expected to create direct and indirect employment for an average of 2,400 individuals per year over five years.
Similarly, the HPR contract was also awarded to Larsen & Toubro Limited for US $680 million. This will replace the IAF’s existing long-range radars with modern Active Aperture Phased Array-based HPRs with advanced surveillance capabilities, significantly enhancing the IAF’s terrestrial air defense capabilities. This initiative will boost indigenous radar manufacturing technology, marking the first radar of its kind to be built by the private sector in India and is expected to generate direct and indirect employment for an average of 1,000 people per year over five years.
Contracts for the procurement of BrahMos missiles were signed with BrahMos Aerospace Private Limited (BAPL) for a cost of US $2.36 billion. These missiles, capable of carrying nuclear warheads, will meet the combat and training needs of the Indian Navy and include the purchase of the ship-borne BrahMos system, the primary weapon for maritime strike operations aboard various frontline warships.