 "MoD signs Rs 7,629-cr deal with L&T for additional K9 Vajra artillery guns")
The Ministry of Defence (MoD) on Friday signed a Rs 7,628.70 crore contract with Larsen & Toubro Limited (L&T) for the procurement of additional 155 mm/52 calibre K9 Vajra-T self-propelled tracked artillery guns for the Indian Army.
Announcing the contract, an MoD release stated that the procurement falls under the “Buy (Indian) category”, providing a further boost to the Centre's “Aatmanirbhar Bharat” (self-reliant India) initiative.
The procurement of the latest batch of K9 Vajra-T guns will "catalyse artillery modernisation" and "enhance the Indian Army's overall operational readiness", said the MoD. The guns will be manufactured under licence from South Korean defence major Hanwha Defense, extending an initial contract for 100 guns that has already been completed.
Friday’s contract was signed by senior MoD officials and L&T representatives in the presence of Defence Secretary Rajesh Kumar Singh at South Block in New Delhi. The MoD release did not specify the number of guns being procured under this contract. However, reports earlier this month suggested that the Cabinet Committee on Security (CCS) had cleared a deal for 100 additional K9 Vajra units. Business Standard could not independently verify this information.
The MoD described the K9 Vajra as a "versatile artillery gun" with cross-country mobility that will enhance the Army's firepower, enable deeper precision strikes, and bolster artillery capabilities across all terrains. “The gun, equipped with cutting-edge technology, is capable of delivering long-range lethal fire with high accuracy and a higher rate of fire, and will be able to operate at sub-zero temperatures in high-altitude areas to its full potential," said the MoD.
A self-propelled tracked artillery gun is an armoured weapon system on tracks that can move across terrains and fire large-calibre shells.
Also Read
L&T delivered its 100th K9 Vajra self-propelled howitzer from its Armoured System Complex in Gujarat’s Hazira in February 2021, completing all deliveries under a previous MoD contract ahead of schedule. According to an L&T release, the contract, valued at about Rs 4,500 crore and awarded in May 2017, was the largest-ever awarded to an Indian private company through global competitive bidding at the time.
As the prime bidder, L&T partnered with Hanwha Defense, the original equipment manufacturer of the K9 Thunder, to produce the K9 Vajra. The programme included the delivery of 100 howitzers, along with an engineering support package comprising spares, documentation, training, and maintenance transfer of technology to an Army base workshop for lifecycle support.
The first ten K9 Vajra units were imported in semi-knocked-down form from Hanwha and assembled by L&T in India. The remaining 90 units were primarily manufactured domestically, with select major assemblies sourced from South Korea. To support the programme and the “Make-in-India” initiative, L&T established a greenfield manufacturing, integration, and testing facility at its Hazira complex.
The project tied to Friday's contract will generate employment of more than 900,000 man-days over a period of four years, and encourage active participation from various Indian industries, including micro, small, and medium enterprises (MSMEs), said the MoD
The contract with L&T aligns with the ongoing push for self-reliance in defence. According to a report by the Parliamentary Standing Committee on Defence, made public on Tuesday, a total of 333 capital acquisition contracts were signed for the procurement of defence equipment for the Army during the last five financial years (FY20 to FY24) and FY25 (up to September 2024). Of these, 278 contracts — accounting for approximately 88 per cent of the total contract value — were signed with Indian vendors for capital procurement.
Taking stock
> Deal falls under ‘Buy Indian’ category, supporting ‘Aatmanirbhar Bharat’ initiative
> K9 Vajra-T is a versatile gun capable of long-range precision strikes in all terrains, including high-altitude areas
> 278 (88% by value) of 333 defence contracts for Army signed with Indian vendors since FY20