Defence Ministry Signs ₹4,106 Crore Contracts for GSAT-7C and Varunastra

The Ministry of Defence signed two defence acquisition contracts worth approximately ₹4,106 crore in New Delhi on 15 October 2026. The agreements cover a GSAT-7C communication satellite for the Indian Air Force (IAF) and Varunastra heavy-weight torpedoes for the Indian Navy.

Contract Details

The ₹2,563-crore contract for GSAT-7C was signed with New Space India Limited (NSIL), Bengaluru. The ₹1,543-crore contract for Varunastra torpedoes was signed with Bharat Dynamics Limited (BDL), Hyderabad. A. Anbarasu, Additional Secretary and Director-General (Acquisition) in the Department of Defence, was present at the signing. NSIL is a Government of India company under the Department of Space that undertakes commercial activities related to space. BDL is a defence public sector undertaking that manufactures guided missile systems and other defence equipment. The contracts form part of domestic defence procurement and are aligned with the Aatmanirbhar Bharat and Make in India initiatives.

Satellite Communication for the IAF

GSAT-7C is an indigenously designed, developed and manufactured communication satellite intended to provide dedicated satellite communication capability to the IAF. It is planned to complement GSAT-7A and support secure, resilient and continuous communication between IAF assets over greater distances. Satellite communication uses communication satellites to relay signals between ground stations and users. Dedicated satellite links can support real-time connectivity across geographically dispersed air assets. GSAT-7C is a defence communication acquisition; the contract value is ₹2,563 crore.

Varunastra Heavy-Weight Torpedo

Varunastra is an indigenous, ship-launched anti-submarine warfare torpedo developed by the Naval Science and Technological Laboratory (NSTL), a Defence Research and Development Organisation laboratory. It is designed to engage enemy submarines at long ranges and has advanced manoeuvring capabilities. A torpedo is a self-propelled underwater weapon used against ships or submarines. Heavy-weight torpedoes are launched from naval platforms, including surface ships and submarines. Varunastra’s contract value is ₹1,543 crore, and the procurement is for the Indian Navy.

Important Facts for Exams

• New Space India Limited operates under the Department of Space.
• The Naval Science and Technological Laboratory is part of the Defence Research and Development Organisation.
• Varunastra is a ship-launched anti-submarine warfare torpedo.
• GSAT-7C is intended to complement the IAF’s existing GSAT-7A communication satellite.

The two contracts total ₹4,106 crore, with ₹2,563 crore allocated to GSAT-7C and ₹1,543 crore to Varunastra torpedoes.