India signs defense contracts for Rs. 39,125 crore, significantly advancing the government’s “Make-in-India” initiative
The Ministry of Defense (MoD) inked five major defense acquisition contracts worth Rs 39,125 crore in the nation’s capital on Friday, March 1, providing a major boost to the Center’s “Make-in-India” initiative. The contracts included the purchase of BrahMos supersonic cruise missiles, radars, weapon systems, and aero-engines for MiG-29 jets. Giridhar Aramane, the defense secretary, and Rajnath Singh, the minister of defense, were present when the contracts were signed.
What contracts are they?
Of the five contracts, two were with BrahMos Aerospace Private Limited (BAPL) for the purchase of BrahMos missiles and a ship-borne BrahMos system for the Indian Defense Forces, and one was with Hindustan Aeronautics Limited for the purchase of aero-engines for MiG-29 aircraft. The other two contracts were with Larsen and Toubro Limited for the purchase of the Close-in Weapon System (CIWS) and High-Power Radar (HPR).
These agreements will reduce India’s future reliance on foreign equipment producers, save foreign currency, and strengthen domestic defense capabilities.
Specifics of the agreement
Hindustan Aeronautics Limited (HAL) has inked a contract to provide RD-33 aero engines for MiG-29 aircraft at a cost of Rs 5,249.72 crore. The HAL Koraput Division will manufacture these aero engines.
The Indian Air Force (IAF) will be able to maintain the operational capabilities of its MiG-29 fleet for the remainder of its service life with the help of these aero engines. The Russian OEM has granted a Transfer of Technology (TOT) license for the construction of the aero engines. The program’s main goal is to improve the percentage of indigenous materials used in upcoming repair and overhaul (ROH) operations for RD-33 aero-engines by indigenizing a number of high-value, key components.
Agreement for CIWS
At a cost of Rs 7,668.82 crore, Larsen and Toubro Limited has secured a contract for the acquisition of CIWS.
Terminal air defense will be offered by CIWS to a few national sites. The initiative aims to stimulate and promote the active involvement of Indian MSMEs in the aerospace, defense, and related sectors. Over the course of five years, this initiative would create around 2,400 direct and indirect jobs annually.
Agreement for HPR
At a cost of Rs 5,700.13 crore, a deal for the purchase of HPR has also been inked with Larsen & Toubro Limited. It will replace the current LAF long-range radars with a cutting-edge HPR with superior surveillance characteristics that are based on an Active Aperture Phased Array.
By integrating advanced sensors that can identify tiny targets with a radar cross-section, it would greatly improve the IAF’s terrestrial air defense capabilities. Since it would be the first radar of its sort to be developed by the private sector in India, it would support domestic radar manufacturing technology. Over the course of five years, this initiative would create and support an average of 1,000 direct and indirect jobs annually.
Agreement for BrahMos
At a cost of Rs 19,518.65 crore, BrahMos Aerospace Private Limited (BAPL) has inked a deal to purchase BrahMos missiles. The Indian Navy will use these missiles to fulfill its training and combat equipment needs. Nine lakh man-days in the joint venture company and another 135 lakh man-days in the nation’s auxiliary industries, which includes MSMEs, are expected to be employed by this project.
BrahMos Aerospace Private Limited (BAPL) has also inked a deal for the procurement of a ship-borne BrahMos system at a cost of Rs 988.07 crore. The main weapon used by the Indian Navy in maritime strike operations is this system, which is installed aboard a number of front-line vessels.
The device can attack targets on land or in the water at supersonic speeds and at long range with pinpoint precision. Over the course of 7-8 years, the project is anticipated to provide around 60,000 man-days of employment.
