India Signs Defence Deals with HAL, L&T and BrahMos

On February 2th, 2023 the Defence Ministry inked five capital acquisition agreements amounting to ₹39,125 crore with domestic manufacturers towards procurement of critical systems for the Army, Navy and Air Force.

The contracts were exchanged at a ceremony attended by Defence Minister Rajnath Singh. Major private players receiving deals included Larsen and Toubro (L&T) besides public sector undertakings like Hindustan Aeronautics Ltd (HAL) and BrahMos Aerospace.

Details of Agreements:

  1. Hindustan Aeronautics Limited

Procurement contract of aero-engines for Indian Air Force’s MiG-29 aircraft and spares worth ₹22,800 crore was awarded to Bengaluru-headquartered HAL. This supports the MiG-29 upgrade program to enhance combat capabilities.

  1. L&T:

Two separate deals worth ₹8,380 crore were signed with L&T for supplying ship-based Close-in Weapon Systems and High Power Radars for the Navy over next 10 years. The advanced systems boost self-defence and area surveillance capabilities at sea.

  1. BrahMos Aerospace:

Land and naval versions of the BrahMos supersonic cruise missile system will be acquired from the Indo-Russian joint venture under two contracts valued at ₹7,945 crore combined. All BrahMos variants including the extended range BrahMos ER validated last year expand conventional deterrence abilities.

Significance of Deals

The Defence Minister highlighted how the series of deals promotes self-reliance in defence manufacturing as envisioned under the ‘Make in India’ initiative.

Besides supporting indigenous R&D and operational preparedness, reducing import dependence conserves foreign exchange reserves as over 60% of equipment is now locally sourced compared to just 30% eight years ago.

Going forward, indigenous capabilities could be leveraged to meet export demand from friendly nations. Overall, a robust domestic defence ecosystem promises greater strategic autonomy.

As per the Defence Ministry, these deals will further strengthen indigenous capabilities, save foreign exchange and reduce dependency on foreign origin equipment manufacturers in future.



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